Business and Economy

Nigeria’s Economic Growth Declined by 0.30% in 2022 to Settle at 3.10%

According to the National Bureau of Statistics’ most recent gross domestic product (GDP) report, Nigeria’s economic growth slowed to 3.10 percent in 2022 from 3.4 percent in 2021. Poor performance in the energy industry slowed the decline.

The statistics agency reports that Nigeria’s GDP increased by 3.52% year over year in real terms in the fourth quarter of 2022, up from 2.25% in the third quarter. When compared to the 3.98% reported in the fourth quarter of 2021, the rate of growth slowed.

According to NBS, the expansion of the services sector, which achieved an increase of 5.69% and contributed 56.27% to the total GDP, was the key driver of the GDP’s performance in the fourth quarter of 2022.

Although the agriculture sector expanded by 2.05% during the reference period, the Statistics Office reported that its performance was significantly constrained by severe floods that occurred all over the nation, which resulted in lower growth than the fourth quarter of 2021, when it expanded by 3.58%.

According to the fourth quarter report, the industry sector is still having problems, growing by -0.94% and contributing less to total GDP than it did in the third and fourth quarters of 2022 and 2021, respectively.

From the 3.40% reported in 2021, the overall annual GDP growth rate in 2022 was 3.10%. As a result, while the performance of the services sector improved in 2022, that of agriculture and industry declined when compared to 2021.

The total nominal GDP for the quarter under review was N56,757,889.95 million.

This achievement is better than the fourth quarter of 2021, which, according to NBS, had total GDP of N49,276,018.23 million, representing a nominal growth of 15.18% year over year.

Oil Industry

Nigeria’s average daily oil production in the fourth quarter of 2022 was 1.34 million barrels per day (mbpd), which was 0.16 mbpd less than the daily average production of 1.50 mbpd in the same quarter of 2021.

Nonetheless, the data revealed that the Q4 volume was 0.14 mbpd greater than the 1.20 mbpd third quarter production level of 2022.

The real growth of the oil industry, according to NBS, was negative 13.38% year over year in Q4 2022, which is a reduction of 5.33% points from the rate seen in the corresponding quarter of 2021.

According to the report, growth improved by 9.29% points compared to Q3 2022, when it was -22.67%. As compared on a quarterly basis, the oil industry fell by 4.93% in Q4 2022. However, on an annual basis, the performance of the oil industry fell by 19.22% from the -8.30% reported in 2021.

In Q4 2022, the Oil sector therefore contributed 4.34% to the total real GDP, which is less than the same periods in 2021 and the quarter before, when it contributed 5.19% and 5.66%, respectively. In 2022, oil contributed 5.67% of the total yearly GDP to the overall economy.

Other Sector

In real terms, the non-oil industry expanded by 4.44% in Q4-2022. According to NBS, this rate was 0.18% points higher than the third quarter of 2022 and was down 0.29% points from the rate reported in the same quarter of 2021.

Trade, Agriculture (Crop Production), Finance and Insurance, Information and Communication (Telecommunication), and Trade were the primary drivers of this industry in the fourth quarter of 2022. (Financial Institutions).

Construction, real estate, and manufacturing (food, beverage, and tobacco) all contributed to the positive GDP increase.

In real terms, the non-oil sector contributed 95.66% of the country’s GDP in the fourth quarter of 2022, more than it did in the third and fourth quarters of the year before (94.34% and 94.81%, respectively). Moreover, the total contribution in 2022 was 94.33%, up from the 92.76% reported in 2021. SOURCE:

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