Nigeria GDP growth declines in 2022 — National Bureau of Statistics
Nigeria's annual Gross Domestic Product (GDP) growth rate in 2022 stood at 3.10 per cent, a decline from the 3.40 per cent recorded in 2021 according to the National Bureau of Statistics (NBS).
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According to the NBS's GDP report the performance of industry and agriculture declined in 2022 compared to 2021. The research did point out that Nigeria's GDP increased by 3.52 per cent in the fourth quarter (Q4) of 2022, driven by the service sector.
The statistic showed an increase of 1.27 percentage points from the third quarter (Q3) of 2022 when it was 2.25 per cent.
According to the NBS, the service sector increased by 5.69 per cent and made up 56.27 per cent of the GDP of the nation, while the agriculture sector underperformed as a result of the devastating flooding that hit the country last year.
“Although the agriculture sector grew by 2.05 per cent in the reference period, its performance was significantly hampered by severe incidences of flood experienced across the country, accounting for lesser growth relative to the fourth quarter of 2021 which was 3.58 per cent. Moreover, the industry sector was yet challenged, recording -0.94 per cent growth and contributing less to the aggregate GDP relative to the third quarter of 2022 and the fourth quarter of 2021.
Overall, the annual GDP growth rate in 2022 stood at 3.10 per cent, from the 3.40 per cent reported in 2021. Thus, the performance of agriculture and industry reduced in 2022 relative to 2021, while the performance of the services sector improved in 2022.” the NBS’s report noted.
As it relates to the oil sector, Nigeria’s largest sector, the NBS’s report further states; “the nation in the fourth quarter of 2022 recorded an average daily oil production of 1.34 million barrels per day (mbpd), lower than the daily average production of 1.50mbpds recorded in the same quarter of 2021 by 0.16mbpd and higher than the third quarter of 2022 production volume of 1.20mbpd by 0.14mbpd.
The real growth of the oil sector was -13.38 per cent (year-on-year) in Q4 2022 indicating a decrease of 5.33 per cent points relative to the rate recorded in the corresponding quarter of 2021.
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“Growth increased by 9.29 percent points when compared to Q3 2022 which was -22.47%. On a quarter-on-quarter [basis], the oil sector recorded a growth rate of -14.93 percent in Q4 2022.
“The oil sector contributed 4.34 percent to the total real GDP in Q4 2022, down from the figures recorded in the corresponding period of 2021 and the preceding quarter, where it contributed 5.19 per cent and 5.66 per cent respectively. “The total annual contribution of oil to aggregate GDP in 2022 was 5.67 per cent.”
The non-oil sector, on the other hand, rose by 4.4 per cent in 2022 and was responsible for 95.66 per cent of the Q4 growth rate.
Trade, agriculture (crop production), financial and insurance (financial institutions), manufacturing (food, beverage, and tobacco), real estate and construction, and accounting all made positive contributions to the GDP growth in the non-oil sector, which includes the information and communication (telecommunication).