The index for Nigeria’s Gross Domestic Product (GDP) grew by 3.54% (MoM) in Q2 2022 compared to 3.11% in Q1 2022 showing a growth rate of 0.44 points. Year on year, it was however lower than 5.01% recorded in Q2 2021 by 1.47 points.
Growth was mainly driven by activities in the Information and Communication (telecommunication) sector, Trade, Financial, and Insurance sectors.
Others are the Transportation (road transport), Agriculture (crop production), and Manufacturing (food, beverage, and tobacco) sector, all accounting for the positive GDP growth.
The agriculture sector recorded 1.20% during Q2 2022 which was lower than Q2 2021, which recorded 1.30%. The Services sector grew by 6.70%, from 9.27% reported in Q2 2021.
The manufacturing sector in Q2 2022 was 3.00% (YoY), lower than the same quarter of 2021 and lower than the preceding quarter by 0.48% points and 2.89% points respectively.
The sector’s growth rate on a quarter-on-quarter basis stood at -15.47%. A real contribution to GDP in Q2 2022 was 8.65%, lower than the 8.69% recorded in Q2 2021 and lower than the 10.20% recorded in Q1 2022. The growth in the manufacturing sector was boosted by increased demand for local goods as many reacted to the forex shortage by substituting imports for domestic products.
The financial sector was 18.48%, higher by 20.96 points from the rate recorded in the 2021 Q2 and down by 4.76 points from the rate recorded in the preceding quarter. Quarter-on-Quarter growth stood at -5.96%.
The contribution of Finance and Insurance to GDP totalled 4.25%, higher than the contribution of 3.72% recorded in Q2 2021 by 0.54% points, and lower than 4.51% recorded in Q1 2022 by 0.25% points.
The financial sector also recorded an increase in interest income due to an increase in rates from 13% to 14%. Bank credit to the private sectors rose towards the end of Q2 2022 creating more available resources and boosting the economy.
Sector Performance
Oil Sector
The oil sector was –11.77% (YoY) in Q2 2022 indicating a decline of 0.89% points relative to the rate recorded in the corresponding quarter of 2021. Growth increased by 14.27% points when compared to Q1 2022 which was –26.04%.
Quarter-on-Quarter, the oil sector recorded a growth rate of -4.97% in Q2 2022. The Oil sector contributed 6.33% to the total real GDP in Q2 2022, down from the figures recorded in the corresponding period of 2021 and the preceding quarter, where it contributed 7.42% and 6.63% respectively.
The Q2 2022 recorded an average daily oil production of 1.43 million barrels per day (mbpd), lower than the daily average production of 1.61mbpd recorded in the same quarter of 2021 by 0.18 mbpd and lower than the Q12022 production volume of 1.49 mbpd by 0.06mbpd. The poor performance of this sector was influenced mainly by operational challenges such as vandalism of pipelines and oil theft.
Non-Oil Sector
The non-oil sector grew by 4.77% in real terms during Q2 2022. This rate was lower by 1.97% points compared to the rate recorded same quarter of 2021 and 1.31% points lower than Q1 2022.
This sector was driven in Q2 2022 mainly by Information and Communication (Telecommunication); Trade; Financial and Insurance (Financial Institutions); Transportation (Road Transport); Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco), accounting for positive GDP growth.
The non-oil sector contributed 93.67% to the nation’s GDP in Q2 2022, higher than the share recorded in 2021 which was 92.58%, and higher than Q1 2022 recorded as 93.37%.
