JUST IN: Nigeria’s Economy Grew By 3.98% In Fourth Quarter, Says NBS
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 has said.
The 3.98 per cent growth in Gross Domestic Product shows a sustained positive growth for the fifth quarter since the recession witnessed in 2020 when output contracted by -6.10 per cent and -3.62 per cent in the second and third quarters of 2020 under the Covid pandemic.
The fourth quarter growth indicates a steady economic recovery accounting for an annual growth of 3.40 per cent in 2021.
The fourth quarter 2021 growth rate was higher than the 0.11 per cent growth rate recorded in the corresponding fourth quarter period of 2020 by 3.87 percentage points and lower than 4.03 per cent recorded in the third quarter of 2021 by 0.05 percentage points.
Nevertheless, quarter on quarter, the NBS stated that real GDP grew at 9.63 per cent in the fourth quarter 2021 compared to the third quarter of 2021, reflecting a higher economic activity than the preceding quarter.
In the quarter under review, aggregate GDP stood at N49.27trn in nominal terms.
This performance, according to the NBS, is higher when compared to the fourth quarter of 2020 which recorded aggregate GDP of N43.56trn, indicating a year-on-year nominal growth rate of 13.11 per cent.
The nominal GDP growth rate in the fourth quarter of 2021 was higher relative to 10.07 per cent growth recorded in the fourth quarter of 2020, but lower compared to 15.41 per cent growth recorded in the preceding quarter 202.
In terms of oil performance, an average daily oil production of 1.50 million barrels per day (mbpd) was recorded in fourth quarter of 2021.
This shows a lower volume compared to 1.56mbpd recorded in the fourth quarter of 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 per cent in real terms recorded in fourth quarter 2021 and annual growth rate of -8.30 per cent in 2021.
Additionally, during the fourth quarter 2021, oil contributed 5.19 per cent to Gross Domestic Product from 5.87 per cent contributed in fourth quarter 2020. On an annual basis, oil contributed 7.24 per cent compared to 8.16 per cent in 2020.
For the non-oil sector (which excludes crude petroleum and natural gas activity), it recorded a growth rate of 4.73 per cent in the fourth quarter of 2021 in real terms, which is an improvement from the 1.69 per cent reported in the fourth quarter, 2020.
However, growth rate of non-oil sector in third quarter 2021 performed better at 5.44 per cent.
The NBS said that annual growth rate of 4.44 per cent was recorded in 2021 as against -1.25 per cent in 2020.
It added that non-oil accounted for 94.81 per cent, which is an increase from 94.13 per cent recorded in fourth quarter 2020, while annual contribution increased from 91.84 per cent in 2020 to 92.76 per cent in 2021.
It stated further that transportation and storage sector; mining and quarrying; financial and insurance sector; and water supply, sewerage, waste management and remediation sector have shown strong growths during the fourth quarter of 2021.
According to the NBS report, the fastest growing activities in real terms during the fourth quarter 2021 GDP estimates were air transport (63.05 per cent); coal mining (62.91 per cent); metal ores (46.96 per cent); quarrying and other minerals (42.92 per cent); rail transport & pipeline (37.74 per cent); road transport (30.39 per cent); water supply, sewerage, waste management and remediation (28.84 per cent); and financial institutions (25.19 per cent).
On the other hand, the slowest growing activities include oil refining (-43.94 per cent); crude petroleum and natural gas (-8.06 per cent); wood and wood products (-4.82 per cent); pulp, paper and paper products (-3.33 per cent); and textile, apparel and footwear (-2.37 per cent).