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Friday, July 1, 2022

Nigeria GDP Expands by 3.11% in Q1 2022 as Oil Production Slumps

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Nigeria’s Gross Domestic Product (GDP) grew by 3.11% (year-on-year) in real terms in the first quarter (Q1) of 2022, showing a sustained positive growth for six consecutive quarters since the recession witnessed in 2020 when negative growth rates were recorded in quarter two and three of 2020.

The Q1 2022 growth rate was higher than the 0.51% growth rate recorded in Q1 2021 but lower than 3.98% recorded in Q4 2021 as oil output continued to slump, according to the latest data from the National Bureau of Statistics (NBS).

The first quarter 2022 growth rate further represents an improvement in economic performance. The observed trend since Q4 2020 is an indication of a gradual economic stability.

Nevertheless, quarter-on-quarter, real GDP grew at -14.66% in Q1 2022 compared to Q4 2021, reflecting a lower economic activity than the preceding quarter.

In the quarter under review, aggregate GDP stood at N45.317 trillion in nominal terms. This performance is higher when compared to the first quarter of 2021 which recorded aggregate GDP of N40.01 trillion, indicating a year-on-year nominal growth rate of 13.25%.

The nominal GDP growth rate in Q1 2022 was higher relative to the 12.25% growth recorded in the first quarter of 2021 and higher compared to the 13.11% growth recorded in the preceding quarter.

Oil GDP

The nation in the first quarter of 2022 recorded an average daily oil production of 1.49 million barrels per day (mbpd), lower than the daily average production of 1.72 mbpd recorded in the same quarter of 2021, and lower than the fourth quarter 2021 production volume of 1.50 mbpd.

Real growth of the oil sector was – 26.04% (year-on-year) in Q1 2022 indicating a decrease of 23.83% points relative to the rate recorded in the corresponding quarter of 2021.

The oil sector contributed 6.63% to the total real GDP in Q1 2022, down from the figures recorded in the corresponding period of 2021 and up compared to the preceding quarter, where it contributed 9.25% and 5.19% respectively.

Non-Oil GDP

The non-oil sector grew by 6.08% in real terms in Q1 2022. Non-oil sector growth was driven mainly by Information and Communication (Telecommunication), Trade, Financial and Insurance, Agriculture and Manufacturing (Food, Beverage and Tobacco).

In real terms, the non-oil sector contributed 93.37 % to the nation’s GDP in the first quarter of 2022.

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