Nigeria's GDP rises to 3.54% in Q2 2022

By: Damian Okonkwo

Nigeria has witnessed a decline in the annual growth rate of its Gross Domestic Product (GDP) in Q2, 2022 amidst the present economic crisis. According to the report released last week's Friday by the National Bureau of Statistics (NBS), the GDP for the just concluded second quarter in 2022 grew by 3.54 percent Year-over-Year marking a significant 1.47 percent decline when compared to 5.01 percent witnessed in Q2 2021.

However, with regards to Q1 2022, the real GDP seen in Q2 2022 could be said to have improved by 0.44 percent Quarter-over-Quarter when compared to the 3.11 percent recorded in Q1 2022.

More details of the report released by the NBS showed that the major growth in the GDP came from the Agricultural sector which recorded a total of 23.24% growth in its aggregate GDP marking a 0.88% improvement from the previous record of 22.36% seen in Q1 2022.

Nevertheless, the aggregate GDP stood at N17.29 trillion in the second quarter of 2022, marking an over -0.37% decline compared to the N17.35 trillion witnessed in Q1 2022.

An in-depth study of this data showed that the major growth came from the Agricultural sector which rose to 23.24% as the aggregate GDP; compared to the previous record of 22.36% seen in Q1 2022. This marks 1.2% growth year-on-year coming from the agricultural sector.

Similarly, the Services sector rose by 6.7%, while the Industrial sector decreased by 2.3%. This marks another round of decline compared to the 6.81% decline recorded in Q1, 2022.

More so, the oil sector further declined by 11.77% YoY in Q2 2022 compared to the previous record of 26.04% witnessed in Q1 2022. Here the oil sector could be said to have contributed a total of 6.33% to the real GDP in Q2 2022 compared to the previous record of 7.42% in Q2, 2021.

The non-oil sector increased by 4.77 percent in Q2 2022 marking a 1.97 percent decline compared to its previous record in Q2 2021.

The growth in the non-oil sector was largely driven by ICT, Trade, Financial Institutions Agriculture, Transportation, and Manufacturing companies.

Conclusion

The overall implication of the readings from the GDP data above showed that the Nigerian economy performed a little better compared to its previous performance in the first quarter of 2022, but has declined so much when compared to its growth rate compared to its performance in the second quarter of 2021.