The National Bureau of Statistics has disclosed that Nigeria’s Gross Domestic Product, GDP, fell quarter-on-quarter (QoQ) by 1.78 percentage points to 2.25 per cent in the third quarter of 2022 (Q3’22).
This is a drop from the 3.54 per cent recorded in Q2’22.
NBS said this in its Nigerian GDP report for Q3’22, citing the base effects of the recession and the challenging economic conditions that have impeded productive activities as reasons for the deceleration in growth rate.
In the report, real growth of the oil sector continued a downward trend with a massive 10.91 basis points (bps) decline to -22.67 per cent QoQ in Q3’22 from -11.77 per cent in Q2’22.
This trend is reflected in the sector’s contribution to GDP which fell by 0.67 percentage points to 5.66 per cent in Q3’22 from 6.33 per cent in Q2’22.
Similarly, growth in the oil sector decreased by 0.50 percentage points to 4.27 per cent from 3.7 per cent in Q3’22.
NBS said: “The reduction in growth is attributable to the base effects of the recession and the challenging economic conditions that have impeded productive activities. The Q3’22 growth rate decreased by 1.78 percent points from the 4.03 percent growth rate recorded in Q3’21 and decreased by 1.29 percent points relative to 3.54 percent in Q2’22.
However, QoQ, real GDP grew at 9.68 percent in Q3’22, reflecting a higher economic activity in Q3’22 than the preceding quarter.
“For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors.
“The nation in the third quarter of 2022 recorded an average daily oil production of 1.20 million barrels per day (mbpd), 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 percent (year-on-year) in Q3 2022, indicating a decrease of 11.94% points relative to the rate recorded in the corresponding quarter of 2021. Growth also decreased by 10.91% points when compared to Q2’22 which was –11.77 percent.
“The non-oil sector grew by 4.27 percent in real terms during the reference quarter (Q3’22). This rate was lower by 1.18 percent points compared to the rate recorded in the same quarter of 2021 and 0.50 percent points lower than the second quarter of 2022.
“This sector was driven in Q3’22 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. In real terms, the non-oil sector contributed 94.34 percent 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 percent and higher than Q2’22 recorded as 93.67 percent.”