Categories: Business & Economy

Challenging Economic Conditions Retard The Growth of Nigeria’s GDP

Nigeria’s GDP growth slowed in Q3 2022 amid “challenging economic conditions.”

Eko Hot Blog reports that Nigeria’s Gross Domestic Product (GDP) grew by 2.25% (year-on-year) in real terms in the third quarter of 2022.

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This growth rate declined by 1.29% points relative to 3.54% in the second quarter of 2022.

The National Bureau of Statistics (NBS) made the disclosure in its Q3 2022 GDP Report on Thursday.

The NBS noted that the Q3 2022 growth rate declined from 4.03% in the third quarter of 2021.

According to the bureau, the reduction in growth is attributable to the base effects of the recession and the challenging economic conditions that have impeded productive activities.

“The Q3 2022 growth rate decreased by 1.78% points from the 4.03% growth rate recorded in Q3 2021 and decreased by 1.29% points relative to 3.54% in Q2 2022,” the report reads.

“However, quarter-on-quarter, real GDP grew at 9.68% in Q3 2022, reflecting a higher economic activity in Q3 2022 than the preceding quarter. In the quarter under review, aggregate GDP stood at N52,255,809.62 million in nominal terms.

“This performance is higher when compared to the third quarter of 2021 which recorded aggregate GDP of N45,113,448.06 million, indicating a year-on-year nominal growth rate of 15.83%.

“The nominal GDP growth rate in Q3 2022 was higher relative to the 15.41% growth recorded in the third quarter of 2021 and higher compared to the 15.03% growth recorded in the preceding quarter.”

The NBS report also disclosed that Nigeria recorded an average daily oil production of 1.20 million barrels per day (mbpd) in the third quarter of 2022, lower than the daily average production of 1.57mbpd recorded in the same quarter of 2021 by 0.37mbpd and lower than the second quarter of 2022 production volume of 1.43 mbpd by 0.24mbpd.

“The real growth of the oil sector was –22.67% (year-on-year) in Q3 2022 indicating a decrease of 11.94% points relative to the rate recorded in the corresponding quarter of 2021,” the report reads.

“Growth also decreased by 10.91% points when compared to Q2 2022 which was –11.77%. Quarter-on-Quarter, the oil sector recorded a growth rate of -1.80% in Q3 2022. The Oil sector contributed 5.66% to the total real GDP in Q3 2022, down from the figures recorded in the corresponding period of 2021 and the preceding quarter, where it contributed 7.49% and 6.33% respectively.”

Meanwhile, the non-oil sector grew by 4.27% in real terms during the reference quarter (Q3 2022), according to the NBS.

“This rate was lower by 1.18% points compared to the rate recorded same quarter of 2021 and 0.50% points lower than the second quarter of 2022.

“This sector was driven in the third quarter of 2022 mainly by Information and Communication (Telecommunication); Trade; Transportation (Road Transport); Financial and Insurance (Financial Institutions); Agriculture (Crop Production) and Real Estate, accounting for positive GDP growth.

FURTHER READING

“In real terms, the non-Oil sector contributed 94.34% to the nation’s GDP in the third quarter of 2022, higher than the share recorded in the third quarter of 2021 which was 92.51% and higher than the second quarter of 2022 recorded as 93.67%.”

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Philip Ibitoye

Philip Ibitoye is a journalist who boasts more than five years of experience reporting the news. He is an Editor at Eko Hot Blog.

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Philip Ibitoye

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