Nigeria’s GDP grows to 3.5% in Q2 amid concerns of oil theft, inflation – NBS

THE National Bureau of Statistics (NBS) has confirmed a 3.5 per cent gross domestic product (GDP) growth in the second quarter (Q2) of 2022.

The NBS did not, despite the growth, fail to note the negative impact of oil theft and rising inflation on the recorded figure.

The 3.5 per cent growth recorded in the second quarter was slower than the result in the corresponding period of 2021, as the Q2 2022 growth rate decreased by 1.47 per cent points, from the 5.01 per cent growth rate recorded in Q2 2021.

The NBS stated in its report that the oil sector dipped by 11.77 per cent year-on-year in Q2 2022, compared to a contraction of 26.04 per cent recorded in the first quarter (Q1) 2022.

The non-oil sector grew by 4.77 per cent in real terms in the Q2. This rate was lower by 1.97 per cent points compared to the rate recorded in the same quarter of 2021, and 1.31 per cent points lower than the first quarter of 2022.

The sector was driven in the 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 the positive GDP growth.

In real terms, the non-oil sector contributed 93.67 per cent to the nation’s GDP in Q2 2022, higher than the share recorded in Q1 2021, which was 92.58 per cent, and higher than the Q1 2022 figure of 93.37 per cent.

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Some economic watchers who spoke to THE ICIR urged the Federal Government to ride on sectors that performed better and expand growth output on such sectors.

“The government needs to pay attention to the non-oil sector and other areas that have spurred our growth. This is very important for wealth creation and expansion,” an economist, Michael Ani, said.

Another economist, Gospel Obele, also called on the Federal Government to structure a funding channel option for diaspora remittances to support small-scale businesses.

“At this point of our national existence, Nigeria must open channels that create wealth for the SMEs through diaspora funding and remittances.This is key in driving economic growth and wealth creation for core entrepreneurs to drive non-oil growth,” Obele said.