The National Bureau of Statistics (NBS) yesterday said that Nigeria’s Gross Domestics Product (GPD) growth rate was 3.98 per cent in the fourth quarter of 2021.
Statistician General of the Federation, Dr. Simon Harry, who made this known to reporters in Abuja, said with the fourth quarter growth, the annual GDP growth for 2021 now stands at 3.40 per cent.
He added that in nominal terms, aggregate GDP stood at N49.28 trillion in fourth quarter 2021. This performance is higher when compared to fourth quarter 2020 which recorded N43.56 trillion, indicating a year-on-year nominal growth rate of 13.11 per cent.
He pointed out that while the fourth quarter GDP growth figure may appear to an average Nigerian as lower than the 4.03 per cent growth rate recorded in third quarter 2021, analytically, it was an improvement when viewed in terms of the base effect of the corresponding period in fourth quarter 2020 when the economy recorded a GDP growth rate of 0.11 per cent as against -3.62 per cent growth rate recorded in third quarter 2020.
He recalled that the Nigerian economy exited the COVID-19 induced recession in fourth quarter 2020 with a marginal GDP growth rate of 0.11 per cent, adding that the economy has since witnessed four consecutive quarters of positive growths.
GDP growth rate was 0.11 per cent in fourth quarter 2020, 0.51 per cent in first quarter 2021, 5.01 per cent in second quarter 2021 and 4.03 per cent in third quarter 2021.
According to him, the economy has maintained this positive trajectory up to the fourth quarter of 2021, recording a GDP growth rate of 3.98 per cent.
“I must state that the improvement being seen in the output growth in the last five quarters depicts a steady progress made in stemming the COVID-19 pandemic and the associated negative impact on livelihood, well-being, and the economy.
“Globally, many countries have witnessed an improvement in economic performances compared to 2020 when COVID-19 was endemic.
“Thus, economic recovery is a gradual process that requires consistent collective efforts to improve economic activities across the institutional sectors: households, non-profit institutions serving households, financial corporations, non-financial corporations and the government.”
“However, in Nigeria the prospects of consolidating the recovery is glaring considering the improved economic performance over these periods of time,” Harry said.
According to the report, nominal GDP in the preceding quarter of third quarter 2021 stood at N45.11 trillion. Annual Nominal Value in 2021 was N173.53 trillion as against N152.32 trillion in 2020, showing a growth rate of 13.92 per cent.
In terms of real GDP which shows volume of economic activities, fourth quarter 2021 recorded N20.33 trillion, higher by N778.91 billion than N19.55 trillion recorded in fourth quarter 2020. This shows output growth of 3.98 per cent in fourth quarter of 2021. Moreover, output of fourth quarter of 2021 was higher by N1.79 trillion compared to third quarter 2021 when aggregate real GDP was N18.54 trillion.
Annual real value of 2021 stood at N72.39trillion compared to N70.01 trillion in 2020.
Read ALso: GDP drops to 3.98 per cent – NBS
NBS reported that in terms of oil performance, an average daily oil production of 1.50 million barrels per day (mbpd) was recorded in fourth quarter of 2021. This showed a lower volume compared to 1.56mbpd recorded in fourth quarter 2020 by 0.06mbpd.
Harry noted that fourth quarter 2021 daily oil production also showed lower volume compared to the third quarter 2021 production volume of 1.57mbpd.
According to him, this trend accounts for oil growth rate of -8.06 per cent in real terms recorded in fourth quarter 2021 and annual growth rate of -8.30 per cent in 2021. During the fourth quarter 2021, oil contributed 5.19 per cent to GDP from 5.87 per cent contributed in fourth quarter 2020. On an annual basis, oil contributed 7.24 per cent compared to 8.16 per cent in 2020.
Non-oil sector-which excludes crude petroleum and natural gas activity, NBS stated the country recorded growth of 4.73 per cent in fourth quarter 2021 in real terms, an improvement from 1.69 per cent reported in fourth quarter 2020. The growth rate of non-oil sector in third quarter 2021 performed better at 5.44 per cent.
The annual growth rate of 4.44 per cent was recorded in 2021 as against -1.25 per cent in 2020. Non-oil accounted for 94.81 per cent, an increase from 94.13 per cent recorded in fourth quarter 2020, while annual contribution increased from 91.84 per cent in 2020 to 92.76 per cent in 2021.
“Fastest growing activities in fourth quarter 2021 included transportation and storage sector; mining and quarrying; financial and insurance sector; and water supply, sewerage, waste management and remediation sector have shown strong growths during the fourth quarter of 2021.
“Thus, the fastest growing activities in real terms during the fourth quarter 2021 GDP estimates were air transport, 63.05 per cent; coal mining, 62.91 per cent; metal ores, per cent 46.96 per cent; quarrying and other minerals, 42.92 per cent; rail transport and pipeline, 37.74 per cent; road transport, 30.39 per cent; water supply, sewerage, waste management and remediation, 28.84 per cent; and financial institutions, 25.19 per cent. On the other hand, the slowest growing activities include oil refining, -43.94 per cent; crude petroleum and natural gas, -8.06 per cent; wood and wood products, -4.82 per cent; pulp, paper and paper products, -3.33 per cent; and textile, apparel and footwear, -2.37 per cent.
“While air, rail and road transport witnessed high demand in fourth quarter 2021 due to the festive season and easing of travel restrictions, growth of financial institutions was driven principally by the volume of deposits and interest on deposit received.
“In addition, there was an improvement in water supply, sewerage, waste management and remediation during the quarter. On the other hand, the poor performance of oil was due to operational challenges and insecurity coming from pipeline vandalism.
“On the broad sectoral performance, agriculture grew by 3.58 per cent during the fourth quarter of 2021 in real terms higher than fourth quarter 2020 which recorded 3.42 per cent. Industry grew by -0.05 per cent, an improvement over fourth quarter, 2020 growth of -7.30 per cent and Services accounted for 5.58 per cent growth, also an improvement from 1.31 per cent in fourth quarter 2020.
” On annual basis, the growth of industry and services improved from -5.85 per cent and -2.22 per cent in 2020 to -0.47 per cent and 5.61 per cent respectively in 2021, while the growth of agriculture sector declined slightly from 2.17 per cent in 2020 to 2.13 per cent in 2021.
“Agriculture, industry and services contributed 26.84 per cent, 18.05 per cent and 55.11 per cent respectively to GDP in current period. In contrast, agriculture, industry and services contributed 26.95 per cent, 18.77 per cent and 54.28 per cent respectively in fourth quarter 2020.
“This shows higher contribution of services in fourth quarter 2021 compared to fourth quarter 2020 as well as on annual basis in 2021,” the report stated.