Oil Sector Growth Dropped By 26% In Q1
Figures by the National Bureau of Statistics have revealed that real growth of the oil sector was –26.04% (year-on-year) in the first quarter of 2022.
This indicates a decrease of 23.83 percent points relative to the rate recorded in the corresponding quarter of 2021.
In a report titled “Nigeria Gross Domestic Product Q1 2022,” the NBS said growth decreased by 17.99 per cent points when compared to Q4 2021 which was –8.06 per cent. Quarter-on-Quarter, the oil sector recorded a growth rate of 9.11 per cent in Q1 2022.
The oil sector contributed 6.63 per cent to the total real GDP in Q1 2022, down from the figures recorded in the corresponding period of 2021 and up compared to the preceding quarter, where it contributed 9.25 per cent and 5.19 per cent respectively.
According to the report, the nation 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 reported in the same quarter of 2021 by 0.23mbpd and lower than the fourth quarter 2021 production volume of 1.50mbpd by 0.01mbpd.
The drop in daily production raises further concern amid Nigeria’s inability to meet OPEC’s target of 1.772mbpd.
Recall that the Petroleum and Natural Gas Senior Staff Association of Nigeria had called on the Federal Government to shore up efforts towards tackling incessant cases of oil theft that had played a contributory role in the decline of Nigeria’s oil production.
However, the non-oil sector, according to the report, grew by 6.08 per cent in real terms during the reference quarter (Q1 2022).
This rate was higher by 5.28% points compared to the rate recorded in the same quarter of 2021 and 1.34 per cent points higher than the fourth quarter of 2021.