Nigeria’s gross domestic product (GDP) failed to maintain the 3.5 percent growth it recorded in Q2, recording 2.25 percent year-on-year in Q3 2022, according to the latest report from the National Bureau of Statistics (NBS).
Nigeria’s oil-based economy has been bedeviled by shortfalls that have greatly impeded revenue generation, with oil production reduced as low as 1.20 million barrels per day (mbpd) in the period under review.
The NBS said slowed productive activities, which resulted in recession, is the major factor in the drop of GDP growth. Per the agency, on a year-on-year basis, the third quarter of 2022 growth rate decreased by 1.78 percent points from the 4.03 percent growth rate recorded in the corresponding quarter in 2021.
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“However, quarter-on-quarter, real GDP grew at 9.68 percent in Q3 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,” the agency said.
“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 percent.
“The nominal GDP growth rate in Q3 2022 was higher relative to the 15.41 percent growth recorded in the third quarter of 2021 and higher compared to the 15.03 percent growth recorded in the preceding quarter,” it added.
The report said the non-oil sector grew by 4.27 percent in real terms but was lower by 1.18 percent points compared to the rate recorded in the same quarter of 2021 and 0.5 percent 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 reads.
“In real terms, the non-oil sector contributed 94.34 percent 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 percent and higher than the second quarter of 2022 recorded as 93.67 percent.”
Dwindling oil production resulted in decline in oil revenue in the quarter under review. The oil sector’s growth declined by 10.91 percent in Q3 2022, compared to a contraction of 11.77 percent recorded in Q2 2022.
“The Oil sector contributed 5.66 percent 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 percent and 6.33 percent, respectively,” the report adds.
Within the period under review, the report added that the nation recorded an average daily oil production of 1.20 mbpd, lower than the daily average production of 1.57 mbpd recorded in the same quarter of 2021 by 0.37 mbpd and lower than the second quarter of 2022 production volume of 1.43 mbpd by 0.24mbpd.
Nigeria’s oil production has been severely stymied by oil theft, cutting its output below the country’s 1.830 mpbd OPEC’s quota. Nigeria was losing more than 600,000 barrels per day to oil thieves, an alarming rate of economic sabotage that has, without sufficient revenue from the non-oil sector, slowed the GDP growth.