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Thursday, August 18, 2022

Nigeria’s GDP Grew by 3.98% in Q4 2021- NBS

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The Nigerian economy grew by 3.98 per cent year-on-year in real terms in the fourth quarter of 2021, the National Bureau of Statistics disclosed on Thursday.

Statistician General of the Federation, Dr Simon Harry who disclosed this at a press briefing in Abuja said, the economy had maintained a positive trajectory up to the 4th quarter of 2021.

“This figure to an average Nigerian may be seen lower than the 4.03% growth rate recorded in Q3, 2021. However, analytically, it is not when viewed in terms of the base effect of the corresponding period in Q4 of 2020 when the economy recorded a GDP growth rate of 0.11% as against the growth rate recorded in Q3 of the same year which was -3.62%.

Continuing, Harry said, “I must state that the improvement being seen in the output growth in the last five quarters depicts a steady progress made in stemming the Covid-19 pandemic and the associated negative impact on livelihood, well-being, and the economy. Globally, many countries have witnessed an improvement in economic performances compared to 2020 when Covid-19 was endemic.

“Thus, economic recovery is a gradual process that requires consistent collective efforts to improve economic activities across the institutional sectors: households, non-profit institutions serving households, financial corporations, non-financial corporations and the government.

“However, in Nigeria the prospects of consolidating the recovery is glaring considering the improved economic performance over these periods of time. It is important to also mention that annual GDP growth of 2021 stands at 3.40%.”

Summary of Fourth Quarter Gross Domestic Product Estimates

The Statistician General pointed out that in nominal terms, aggregate GDP stood at N49.28trillion in the fourth quarter 2021, adding that “this performance is higher when compared to fourth quarter 2020 which recorded N43.56 trillion, indicating a year-on-year nominal growth rate of 13.11%”.

He also noted that Nominal Gross Domestic Product in the preceding quarter of Q3 2021 stood at N45.11 trillion. Annual Nominal Value in 2021 was N173.53trillion as against N152.32 trillion in 2020, showing a growth rate of 13.92%.

Explaining further, he said, in terms of real GDP which shows volume of economic activities, fourth quarter 2021 recorded N20.33 trillion, higher by N778.91 billion than N19.55 trillion recorded in fourth quarter 2020.

“This shows output growth of 3.98% in fourth quarter of 2021. Moreover, output of fourth quarter of 2021 was higher by N1.79 trillion compared to third quarter 2021 when aggregate real GDP was N18.54 trillion. Annual real value of 2021 stood at N72.39trillion compared to N70.01 trillion in 2020”, Harry added.

He said in terms of oil performance in the oil sector, an average daily oil production of 1.50 million barrels per day (mbpd) was recorded in fourth quarter of 2021, which shows a lower volume compared to 1.56mbpd recorded in Q4 2020 by 0.06mbpd.

Fourth quarter 2021 daily oil production also shows lower volume compared to the third quarter 2021 production volume of 1.57mbpd. This trend accounts for oil growth rate of -8.06% in real terms recorded in fourth quarter 2021 and annual growth rate of -8.30% in 2021. Additionally, during the fourth quarter 2021, oil contributed 5.19% to Gross Domestic Product from 5.87% contributed in fourth quarter 2020. On an annual basis, oil contributed 7.24% compared to 8.16% in 2020.

According to him, the Non-oil Sector, which excludes Crude Petroleum and Natural Gas activity, recorded growth of 4.73% in fourth quarter 2021 in real terms, an improvement from 1.69% reported in fourth quarter, 2020 revealing however, that growth rate of Non-Oil sector in third quarter 2021 performed better at 5.44%.

“Annual growth rate of 3.40% was recorded in 2021 as against -1.92% in 2020. Non-Oil accounted for 94.81%, an increase from 94.13% recorded in fourth quarter 2020, while annual contribution increased from 91.84% in 2020 to 92.76% in 2021. Fastest growing activities in fourth quarter 2021,” he added.

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