Nigeria’s economy grows by 4.03% in Q3 – NBS

Nigeria’s economy grew more slowly in the third quarter of the year than it did in the second quarter, according to data from the National Bureau of Statistics (NBS)

This was revealed by the Statistician-General of the Federation, Simon Harry, while briefing journalists in Abuja, the nation’s capital.

According to Harry, from July to September, Nigeria’s economy grew by 4.03 percent but slower than the massive 5.01 percent GDP recorded in the previous quarter

He also revealed that the aggregate GDP stood at 45.11 trillion in nominal terms, a 15.41 percent increase when compared to the same period in 2020.

Harry, however, explained that the base effect of the negative economic growth recorded in Q2 and Q3 2020 as a result of the COVID-19 pandemic contributed to the growth in GDP in 2021.

He added that the current growth trend can be sustained with strict adherence to safety measures effected to control the spread of the COVID-19 pandemic and other variants of the disease.

This is the fourth quarter of positive growth in the economy since the 2020 recession which was exacerbated by the impact of the Covid 19 pandemic on Africa’s largest economy.

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Output had contracted by -6.10percent and -3.62percent in Q2 and Q3 of 2020 under the Covid pandemic.

Part of the third quarter report showed that the nation recorded an average daily oil production of 1.57 million barrels per day (mbpd), lower than the daily average production of 1.67mbpd recorded in the same quarter of 2020 by 0.10mbpd and lower than the second quarter 2021 production volume of 1.61mbpd by 0.05mbpd.

“Real growth of the oil sector was –10.73% (year-on-year) in Q3 2021, indicating an increase by 3.16% points relative to rate recorded in the corresponding quarter of 2020.

Growth increased by 1.92% points when compared to Q2 2021 which was –12.65%. Quarter-on-Quarter, the oil sector recorded a growth rate of 12.05% in Q3 2021.

“The Oil sector contributed 7.49% to total real GDP in Q3 2021, down from figures recorded in the corresponding period of 2020 and up compared to the preceding quarter, where it contributed 8.73% and 7.42% respectively,” the report added.

For nonoil sector, the NBS revealed that the sector grew by 5.44% in real terms during the third quarter.

“This rate was higher by 7.95% point compared to the rate recorded same quarter of 2020 and 1.30% point lower than the second quarter of 2021.”

“Non-oil sector was driven in third quarter 2021 mainly by trade, Information and Communication (Telecommunication); other drivers include Financial and Insurance (Financial Institutions); Manufacturing (Food, Beverage & Tobacco); Agriculture (Crop Production); and Transportation and Storage (Road Transport), accounting for positive GDP growth.”

“However in real terms, the Non-Oil sector contributed 92.51% to the nation’s GDP in third quarter 2021, higher from share recorded in the third quarter of 2020 which was 91.27% and lower than the second quarter of 2021 recorded as 92.58%,” NBS said.