‘Seun Ibukun-Oni, Abuja
Daily Courier – The Nigerian economy has sustained a positive trend for the sixth consecutive quarter as it recorded a 3.11 per cent growth in the first four months of this year, the National Bureau of Statistics (NBS) announced yesterday.
The NBS listed the major contributors to the growth as Information and Communication (Telecommunication), trade, financial and insurance (Financial Institutions), Agriculture (Crop Production), and Manufacturing (Food, Beverage & Tobacco).
The bureau said in real terms, the non-oil sector contributed 93.37 per cent to the GDP in the first quarter of 2022, a figure higher than the 90.75 per cent recorded in the first quarter of 2021 and lower than the fourth quarter of 2021 put at 94.81 per cent.
In the period under review, aggregate GDP stood at N45.31 trillion, which is higher than the N40.01 trillion recorded in the first quarter of 2021, thus indicating a year-on-year nominal growth rate of 13.25 per cent, the Statistician- General of the Federation, Semiu Adeniran, stated.
He said: “Agriculture, Industry and Services contributed 22.36 per cent, 21.47 per cent, and 56.17 per cent respectively to GDP in the review period. This shows higher contributions of Agriculture and services in the first quarter of 2022 compared to the first quarter of 2021, when it recorded 22.35 per cent and 53.90 per cent respectively.
The economy has been on the path of growth for five quarters, signifying an exit from the recession after the recession experienced by the country in 2020 occasioned by the Covid-19 pandemic.”
Adeniran highlighted the recent performance of the economy over the last five quarters, including the growth recorded: 0.11 per cent (fourth quarter 2020), 0.51 per cent (first quarter 2021), 5.01 per cent (second quarter 2021), 4.03 per cent (third quarter 2021), and 3.98 per cent (fourth quarter 2021).
He added: “I am pleased to announce to you that the economy maintained this positive trend for the sixth consecutive quarter, recording an output growth of 3.11 per cent in the first quarter of 2022 on a year-on-year basis. It is important to state that the improvement seen in the output growth over time depicts steady progress made by the nation in restoring economic stability disrupted by the Covid-19 pandemic. Thus, we are gradually tending towards economic stability.”
Giving the summary of first quarter 2022 GDP estimates, the NBS boss stated in nominal terms, that aggregate GDP stood at N45.32 trillion in the first quarter of 2022.
He explained that the performance was higher when compared to the first quarter of 2021 which recorded N40.01 trillion, indicating a year-on-year nominal growth rate of 13.25 per cent.
According to him, the Nominal GDP in the preceding quarter of the fourth quarter of 2021 stood at N49.28 trillion.
His words: “In terms of real GDP, the first quarter of 2022 was recorded at N17.35 trillion, higher by N522.49 billion than the N16.83 trillion recorded in the first quarter of 2021. This shows output growth of 3.11 per cent in the first quarter of 2022. Output in the first quarter of 2022 was, however, lower by N2.98 trillion when compared to the fourth quarter of 2021 when the aggregate real GDP was N20.33 trillion.
“The crude oil production 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 1.72mbpd recorded in the same quarter of 2021 by 0.23mbpd, and lower than the fourth quarter of 2021 production volume of 1.50mbpd by 0.01mbpd. Resultantly, the Oil GDP grew by -26.04 per cent in the first quarter of 2022 and accounted for 6.63 per cent of total output during the reference quarter.
“The non-oil sector grew by 6.08 per cent in real terms during the reference quarter (first quarter 2022). This rate was higher by 5.28 per cent points compared to the rate recorded same quarter of 2021 and 1.34 per cent points higher than the fourth quarter of 2021.
“This sector in the first quarter of 2022 was mainly driven by activities in the Information and Communication (Telecommunication); Trade; Financial and Insurance (Financial Institutions); Agriculture (Crop Production); and Manufacturing (Food, Beverage & Tobacco), all accounting for positive GDP growth. In real terms, the non-Oil sector contributed 93.37 per cent to the nation’s GDP in the first quarter of 2022, higher than the share recorded in the first quarter of 2021 which was 90.75 per cent, and lower than the fourth quarter of 2021 record at 94.81 per cent,” he said.
“Fastest growing activities in the first quarter of 2022. Financial and Insurance sectors, Water Supply, Sewage, Waste Management & Remediation sector, Information and Communication sector, Trade sector, and Human Health & Social Services sector showed strong growth figures during the first quarter of 2022.”
“Thus, the fastest-growing activities in real terms during the first quarter of 2022 were Rail Transport & Pipelines (124.54 per cent); Air Transport (50.68 per cent); Metal Ores (30.76 per cent); Financial Institutions (25.43 per cent); “Telecommunications & Information Services (14.50 per cent); Chemical and Pharmaceutical Products (10.33 per cent); Food, Beverages, and Tobacco (9.81 per cent); and Cement (9.57 per cent).
“However, some of the slowest growing activities include Oil Refining (-44.26 per cent); Crude Petroleum and Natural Gas (-26.04 per cent); Road Transport (-24.63 per cent); Quarrying and Other Minerals (-13.72 per cent); Coal Mining (-12.97 per cent); Electrical and Electronics (-4.87 per cent), among others.
“Rail and Air transport activities witnessed high demand in the first quarter of 2022 compared to the corresponding quarter of 2021, as they are known to provide alternative modes of transportation considered to be safer, in addition to the easing travel restrictions.
“The growth recorded in Metal Ores was driven principally by the increase in the volume of production during the quarter. Again, there was an improvement in the performance of Water Supply, Sewerage, Waste Management, and Remediation activities during the quarter as a result of an increased volume of water processing and waste collection. On the other hand, the poor performance of oil was occasioned by operational challenges such as vandalism of pipelines and oil theft.
“On the broad sectoral performance, Agriculture grew by 3.16 per cent during the first quarter of 2022 in real terms, higher than the first quarter of 2021 which recorded 2.28 per cent. The industry, grew by -6.81 per cent, which is a decline over the figure recorded in the first quarter of 2021 when it recorded a growth of 0.94 per cent. The Services sector grew by 7.45 per cent, an improvement from -0.39 per cent reported in the first quarter of 2021.
“In conclusion, I must not forget to say a word of appreciation to our partners in the statistical system for their consistent and unwavering support.
“In particular, I wish to thank the media for the important role it continues to play in informing the general public, as well as its continued support for NBS’s data dissemination policy. There is no doubt that the support provided has helped tremendously to improve statistical delivery and usage in Nigeria.”
“In the same vein, I look forward to a credible reporting on the first quarter GDP, 2022 in both electronic and print media, as well as all social media platforms. As usual, NBS remains open to providing further information and clarifications on this important statistical product” reads the statement in parts.”