The Nigeria Bureau of Statistics has stated that the country’s Gross Domestic Product (GDP) grew by 5.01% (year-on-year) in real terms in the second quarter of 2021.
In a report released by the bureau on Thursday, it stated that the development marks three consecutive quarters of growth and that it is coming after negative
growth rates recorded in the second and third quarters of 2020.
The NBS said the steady recovery observed since the end of 2020, with the gradual return of commercial activity as well as local and international travel,
accounted largely for the significant the increase relative to the second quarter of 2020 when nationwide restrictions took effect.
According to the document obtained by DAILY RIPPLES, the major contributory sector was the non-oil such as travel and tourism, which grew by 6.74% in real terms while the oil sector
a sharp contrast to the decline of about 12.65% year-on-year.
The report also added that the contribution of the non-oil sector is very significant as it grew from 90.75% recorded in the previous quarter to 92.58% in Q2 2021.
while the oil sector contribution declined from 9.25% to 7.42%.
Year to date, real GDP grew 2.70% in 2021 compared to -2.18% for the first half of 2020.
Nevertheless, quarter on quarter, real GDP grew at -0.79% in Q2 2021 compared to Q1 2021, reflecting slightly slower economic activity than
the preceding quarter due largely to seasonality.
The oil sector contracted by 12.65% (year-on-year) in Q2 2021 indicating a decrease of –6.02% points relative to the growth rate recorded in the corresponding quarter of 2020. Growth decreased by -10.44% points when compared to Q1 2021 which was –2.21%.
In Q2 2021, average daily oil production stood at 1.61 million barrels per day (mbpd), which is -0.19 mbpd lower than the average daily production of 1.81 mbpd recorded in the same quarter of 2020 and -0.10 mbpd lower than the 1.72 mbpd recorded in the first quarter of 2021.
Also, in the first half of 2021, real GDP was recorded at -7.13%, compared to -0.80% for the first half of 2020, the performance reflecting lower oil output. Quarter-on-quarter, the oil sector recorded a growth rate of -20.35% in Q2 2021.
The non-oil sector grew by 6.74% in real terms in the review period (Q2 2021). The Q2 2021 growth rate was higher by 12.80% points compared to the rate recorded in the same quarter of 2020 and 5.95% points higher than the first quarter of 2021.
During the quarter, the sector was driven mainly by growth in Trade, Information and Communication (Telecommunication), Transportation (Road Transport), Electricity, Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco).
This reflects the easing of the restrictions on movement, business and economic activity across the country compared to the corresponding period of 2020.
According to the report, Electricity, gas, steam and air conditioning supply recorded the highest year-on-year in sectoral growth with 78.19% expansion rate, followed by the transportation and storage sector which grew by 76.8% in the review period.
Others include Trade (22.5%), Water supply and waste management (18.5%), ICT (5.5%), and human health services with 4.9% growth rate.
The latest GDP figures is an indication of recovery from the economic recession recorded in the previous year, largely attributed to ease on the restriction of movement and the resumption of economic activities. However, the growth of 5.01% is also this high due to the significant dip recorded in the corresponding period of 2020.