Nigeria’s GDP records 4.03% growth in Q3, 2021 as oil production tanks

The Gross Domestic Product (GDP) which measures Nigeria’s economy grew by 4.03 per cent in the third quarter (Q3) of 2021, year-on-year, according to the National Bureau of Statistics (NBS).

The Nigerian economy had experienced a surge, as evidenced in the 5.01 per cent year-on-year growth in the GDP of the second quarter (Q2) of 2021, but the Q3 equivalent figures show a decline.On a quarter on quarter basis, the report said “real GDP grew at 11.07 per cent in Q3 2021 compared to Q2 2021, reflecting a higher economic activity than the preceding quarter.”

According to the Statistician-General of the Federation and Head of the National Bureau of Statistics, Simon Harry in his address on Thursday blamed the slow growth in Q3 on the COVID-19 pandemic.

“You will recall that the contraction of quarters two and three of 2020 has resulted in positive growth as recorded consecutively for the last three-quarters of quarter four, 2020 with 0.11 per cent, quarter one, 2021 with 0.51 per cent and quarter two 2021 with 5.01 per cent,” he said.

Harry expressed hopes in the recovery of the Nigerian economy, saying the current trend of improvement needs to be sustained.

According to him, the “annual GDP growth of 2021 stands at -1.92 per cent.”

The NBS report shows the aggregate GDP stood at N45.113 trillion in nominal terms.

When compared to the aggregate GDP of the third quarter of 2020, which is N39.089 trillion, it shows a nominal growth rate of 15.41 per cent.

The average daily oil production was 1.57 million barrels per day (mbpd)in the quarter under review.

This was a drop by 0.10 mbpd, considering the average daily production of oil in the same quarter in 2020 was 1.67 mbpd.

The non-oil sector contributed 92.51 per cent to the nation’s GDP, indicating a 5.44 per cent growth in real terms during the quarter in review.

In Q3 of 2020, the non-oil sector contributed 91.27 per cent to the GDP and when compared to the rate recorded in 2021, the performance was higher by 7.95 per cent.

According to the NBS report, “this sector was driven in third quarter 2021 mainly by trade, Information and Communication (Telecommunication), other drivers include financial and insurance (financial institutions) and manufacturing (food, beverage and tobacco).

“Others are agriculture (crop production) and transportation and storage (road transport), accounting for positive GDP growth.”