Nigeria’s Gross Domestic Product (GDP) grew by 5.01% year-on-year in real terms in the second quarter of 2021, according to the report released by the National Bureau of Statistics (NBS).
The GDP growth in Q2 2021 marked three consecutive quarters of growth after the negative growth rates recorded in the second and third quarters of 2020. In the second quarter of 2020, Nigerian GDP shrank by minus 6.10%.
The Q2 2021 growth is higher than the 0.51% growth recorded in Q1 2021.
Year to date, real GDP grew 2.70% in 2021 compared to -2.18% for the first half of 2020.
NBS attributed the Q2 2021 growth to the return of business and economic activity near levels seen prior to the nationwide implementation of COVID-19 related restrictions.
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.
Aggregate GDP stood at N39.12 trillion in nominal terms in Q2 2021, a 14.99% rise YoY from N34.02 trillion in Q2 2020.
Non-oil sector contributed 92.59% of the GDP in Q2 2021, up from 90.75% in Q1 2021 and 90.75% in Q2 2020, while the oil sector contributed 7.42%, down from 9.25% in Q1 2021 and 8.93% in Q2 2020.
Further breakdown show that Agriculture contributed 23.78% of the GDP in Q2 2021, Industries contributed 20.57% and Services accounted for 55.66%.
In the second quarter of 2021, average daily oil production stood at 1.61 million barrels per day (mbpd), which is -0.19mbpd lower than the average daily production of 1.81mbpd recorded in the same quarter of 2020 and -0.10mbpd lower than the 1.72mbpd recorded in the first quarter of 2021, according to the report.
Real growth of the oil sector was –12.65% year-on-year in Q2 2021. The non-oil sector on the other hand grew by 6.74% in real terms in Q2 2021.
NBS said the growth in the non-oil sector was driven mainly by growth in Trade, Information and Communication (Telecommunication), Transportation (Road Transport), Electricity, Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco), reflecting the easing of movement, business and economic activity across the country relative to the same period a year earlier.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.