Economic growth in Nigeria accelerated faster than expected in the second quarter of 2022, surpassing analysts’ estimation. Reports disclose that the increase in Nigeria’s GDP was majorly driven by the growth in the non-oil sector.
The country’s National Gross Domestic Product (GDP) rose to 3.54% year-on-year in the second quarter of 2022, falling 1.47% below the 5.01% economic growth in Q1 2021, due to the decline in the oil sector for two sectors consecutively.
In the second quarter, aggregate GDP stood at N45,004,520.89 trillion in nominal terms. This performance is reported to be higher when compared to the second quarter of 2021 which recorded aggregate GDP of N39,123,713.32 trillion, indicating a year-on-year nominal growth rate of 15.03 percent.
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Analysts disclosed that the Nigerian economy has so far shown signs of resilience in the face of rivalry between Russia and Ukraine, which affected the global economy.
Contributing to Nigeria’s GDP growth in Q2 2022, there are the top-five sectors that performed well. Check out the list below.
Here Is A List Of Nigeria’s Top-Five Performing Sectors In Q2 2022
1.) Road Transport
Sitting on the first position as the top best performing sector in Q2 2022 is road transport, which grew by 56.38 percent. The sector’s growth rate, however, witnessed a decline from the 92.38 percent growth rate in Q2 2021 and an improvement from -24.63 percent in Q1 2022.
The road transportation sector represents the largest sector in the transportation and storage sector in Nigeria. With over 11.8 million licensed cars on Nigeria’s roads as of Q4 2018, the transport sector recovered from the 24.63% contraction reported in the first quarter of this year but fell behind the 92.38% recorded in Q2 2022.
It is no surprise that the sector sits on the first position, because Nigeria’s roads and highways form the backbone of the country’s transport network, as these arteries handle 90% of all passenger and freight traffic.
2.) Coal Mining
This sector grew by 36.06 percent, as the growth rate in the sector during this period showed an increase from 34.13 percent in the corresponding quarter of 2021.
The coal mining sector’s growth also improved from -12.97 percent in Q1 2022. This sector’s performance in in Q2 2022 is not surprising, as Nigeria currently holds one of the largest coal reserves in the world, estimated at 2 billion metric tonnes. It is also one of the leading coal briquette producers and exporters in the world.
The export of coal from Nigeria to other parts of the World between the period of 1916 and 1959 served as a viable source of revenue generation even to date.
3.) Water Supply, Sewage, And Waste Management
Nigeria’s water supply, sewage, and waste management sector, grew by 23.73 percent. This growth rate represents an increase from the 18.48 percent growth rate reported in Q1 2021.
The sector improved during the quarter from the 13.22 percent growth rate recorded in Q1 2022.
4.) Air Transport
The Air transport sector in Nigeria grew by 22.45 percent in the second quarter of 2022, from 4.98 percent reported in the same quarter of 2021.
The air transport subsections in Nigeria account for the second highest share of modal contribution to transport output.
Interestingly the deregulation of the aviation sector also contributed to the new entry of firms into the sector as the industry witnessed a high turnover of domestic carriers.
However, despite the gains domestic airlines witnessed due to insecurity, the growth fell below the 50.68% increase reported in the first quarter.
5.) Quarrying And Other Minerals
Quarrying and other minerals grew by 22.15 percent in Q2 2022, compared to the 5.75 percent reported in Q2 2021.
The growth rate also improved during the period from the -13.72 percent growth rate reported in Q1 2022.