Nigeria’s Economic Growth Slows To 2.25% As Oil Production Slumps

Nigeria’s Gross Domestic Product (GDP) grew by 2.25% (year-on-year) in the third quarter of 2022, the National Bureau of Statistics (NBS) has disclosed. 

The NBS in a report released on Thursday stated that oil production also dropped averagely to 1.2m barrel per day, adding that the sector only contributed 4.2 per cent to the economy during the period.

This means that the economy is steadily relying on the non-oil sectors which contributed 94.34 per cent. The report further stated that the GDP reduced from 4.03% in the third quarter of 2021. It blamed the slow growth on the recession and the challenging economic conditions that have hindered productive activities.

“The Q3 2022 growth rate decreased by 1.78 per cent points from the 4.03% growth rate recorded in Q3 2021 and decreased by 1.29% points relative to 3.54% in Q2 2022,” part of the report read.

However, it said the real GDP grew at 9.68 per cent when compared to the second quarter of 2022, ‘reflecting a higher economic activity in Q3 2022 than the preceding quarter.’

“In the quarter under review, aggregate GDP stood at N52,255,809.62 million in nominal terms. This performance is higher when compared to the third quarter of 2021 which recorded aggregate GDP of N45,113,448.06 million, indicating a year-on-year nominal growth rate of 15.83 per cent.”

Also, it noted that the nominal GDP growth rate in Q3 2022 was higher relative to the 15.41 per cent growth recorded in the third quarter of 2021 and higher compared to the 15.03 per cent growth recorded in the preceding quarter.

Oil production drops to 1.2m

Meanwhile, in the report, oil production dropped to an average daily production of 1.20 million barrels per day (mbpd), which is lower than the daily average production of 1.57mbpd recorded in the same quarter of 2021 and lower than the second quarter of 2022 production volume of 1.43 mbpd.
On the other hand, the non-oil sector grew by 4.27% in real terms.

But the figure is lower by 1.18 points when compared to the rate recorded in the same quarter of 2021 and 0.50% points lower than the second quarter of 2022.

“This sector was driven in the third quarter of 2022 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,” the report stated.

In real terms, the non-oil sector contributed 94.34% 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% and higher than the second quarter of 2022 recorded as 93.67%.

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