August 27, (THEWILL) – The rise in inflation rate, along with a drop in Nigeria’s crude oil production, have caused a decline in the Gross Domestic Product (GDP) growth rate to 3.54 percent in the second quarter (Q2 2022) of this year, the National Bureau of Statistics (NBS) disclosed on Friday.
In a second-quarter GDP report released on Friday, in Abuja, Statistician General of the Federation, Prince Semiu Adeyemi Adeniran, said Nigeria’s economy grew 3.54 percent in the second quarter, slower than the 5.01 percent recorded in the same period last year.
According to the NBS report, the 3.54 percent Q2 2022 GDP represents a decline when compared to the 5.01 percent recorded in the second quarter of 2021 despite the negative impact of the COVID-19 pandemic on the Nigerian economy.
“Nigeria’s Gross Domestic Product (GDP) grew by 3.54% (year-on-year) in real terms in the second quarter of 2022.
“This growth rate declined from 5.01% in the second quarter of 2021 when rapid growth was recorded following the toll the COVID-19 pandemic exacted on the economy in Q2 2020.
“In addition, the recent rising prices have adversely impacted the second quarter 2022 performance.
“The Q2 2022 growth rate decreased by 1.47% points from the 5.01% growth rate recorded in Q2 2021 and increased by 0.44% points relative to 3.11% in Q1 2022.
“However, quarter-on-quarter, real GDP grew at -0.37% in Q2 2022, reflecting lower economic activity in Q2 2022 .
“In the quarter under review, aggregate GDP stood at N45,004,520.89 million in nominal terms. This performance is higher when compared to the second quarter of 2021 which recorded aggregate GDP of N39,123,713.32 million, indicating a year-on-year nominal growth rate of 15.03%.
“The nominal GDP growth rate in Q2 2022 was higher relative to the 14.99% growth recorded in the second quarter of 2021 and higher compared to the 13.25% growth recorded in the preceding quarter. For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors”, the NBS said in its overview of GDP in Q2 2022.
The NBS in its report stated that Africa’s top oil producer recorded an average daily oil production of 1.43 million barrels per day in the second quarter of this year, lower than the daily average production of 1.61 mbpd recorded in the same quarter of 2022.
The non-oil sector grew by 4.77% in real terms during the reference quarter (Q2 2022). This rate was lower by 1.97% points compared to the rate recorded same quarter of 2021 and 1.31% points lower than the first quarter of 2022.
This sector was driven in the second quarter of 2022 mainly by Information and Communication (Telecommunication); Trade; Financial and Insurance (Financial Institutions); Transportation (Road Transport); Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco), accounting for positive GDP growth.
In real terms, the non-oil sector contributed 93.67% to the nation’s GDP in the second quarter of 2022, higher than the share recorded in the second quarter of 2021, which was 92.58% and higher than the first quarter of 2022 recorded as 93.37%.
Further breakdown of the report shows that the urban inflation rate rose by 2.08 percent to 20.09 percent in July 2022, from 18.01 percent recorded in July 2021, while the rural inflation rate hit 19.22 percent from 16.75 percent recorded in the corresponding period under review.
The inflation rate in Nigeria stood at 19.64 percent in July this year, the highest in the last 17 years. The last time inflation in the country was above 19.64 percent was in September 2005, when it peaked at 24.32 percent.
Increases in the food and core index drove the uptick in the inflation rate.
