The National Bureau of Statistics (NBS) on Thursday reported that Nigeria’s Gross Domestic Product (GDP) grew by 2.25% (year-on-year) in real terms in the third quarter of 2022, representing 1.78% points decrease from the 4.03% growth rate recorded in Q3 2021
The Q3 GDP growth rate reflected a 1.29% points decline relative to 3.54% growth the economy recorded in Q2 2022.
The coordinating agency for Nigeria’s statistical system in its latest ‘Nigerian Gross Domestic Product Report Q3 2022’ attributed the slowdown in the nation’s economic performance primarily to the base effects of the recession and the challenging economic conditions that had impeded productive activities over the past few months.
The Bureau reported that, however, quarter-on-quarter, real GDP grew at 9.68% in Q3 2022, reflecting a higher economic activity in Q3 2022 than the preceding quarter.
The agency clarified: “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%.
“The nominal GDP growth rate in Q3 2022 was higher relative to the 15.41% growth recorded in the third quarter of 2021 and higher compared to the 15.03% growth recorded in the preceding quarter”, it added.
A further analysis of the GDP growth in Q3 2022 performance on sectorial basis indicated that the oil sector recorded a real growth of–22.67% year-on-year, indicating a decrease of 11.94% points relative to the growth rate it recorded in the corresponding quarter of 2021.
The sector’s growth declined by 10.91% points when compared to Q2 2022 which was –11.77% while quarter-on-quarter, the sector recorded a growth rate of -1.80% in Q3 2022.
The Bureau further reported that the Oil sector contributed 5.66% to the total real GDP in Q3 2022, down from the figures recorded in the corresponding period of 2021 and the preceding quarter, where it contributed 7.49% and 6.33% respectively.
On the non-oil sector performance, the agency noted that the sector grew by 4.27% in real terms in Q3 2022, which was lower by 1.18% points compared to the rate recorded in the corresponding quarter of last year and 0.50% points lower than the second quarter of 2022.
It added that in real terms, the Non-Oil sector contributed 94.34% to the nation’s GDP in Q3 2022, representing improved performance when compared to the 92.51% contribution in Q3 2021 as well as the 93.67% it contributed to the GDP in real terms in Q2, 2022.
The Bureau linked the sector’s improved performance in the quarter under review mainly to contributions by Information and Communication (telecommunication); trade; transportation (road transport); Financial and insurance (financial institutions); agriculture (crop production) and real estate.