Nigeria’s Economy Expands 3.40% in 2021
Nigeria’s economy expands by 3.40% year on year in a real term in the fiscal year 2021, according to the National Bureau of Statistics (NBS) report published on its website today.
The growth was supported by a 3.98% expansion in the nation’s gross domestic growth in the fourth quarter of 2021, slowing from a growth of 4.03% recorded in the third quarter of the same year.
The improvement in the economic performance seen in the fourth quarter marks the fifth quarter on a quarter growth on record after the pandemic breaks the uptrend, causing Nigeria to slip into recession in 2020.
According to data from the National Bureau of Statistics, Nigeria’s gross domestic product (GDP) growth printed at 3.40% in the fiscal year 2021 despite low oil output.
Oil refining dragged down growth. The poor performance of oil was due to operational challenges and insecurity coming from pipeline vandalism, according to Simon Harry, the Statistician-General.
Nigeria’s oil production stood at 1.50 million barrels per day in the final quarter of 2021, compared to 1.56 million recorded during the same period in the previous year, Statistician-General told reporters.
NBS Chief said the Q4 result marks the fifth growth seen since the recession that was witnessed in the fiscal year 2020 when output contracted by -6.10% and -3.62% in the second (Q2) and third quarter (Q3) of the year 2020 under the Covid pandemic.
“The fourth quarter growth indicates a steady economic recovery accounting for an annual growth of 3.40% in 2021”, he added.
NBS figure indicates that the Q4 2021 growth rate was higher than the 0.11% growth rate recorded in Q4 2020 by 3.87% points and lower than 4.03% recorded in Q3 2021 by 0.05% points.
Nevertheless, quarter on quarter, real GDP grew at 9.63% in Q4 2021 compared to Q3 2021, reflecting a higher economic activity than the preceding quarter. In the quarter under review, aggregate GDP stood at N49,276,018.23 million in nominal terms. Read: Public Debt Accounts for 25% of Nigeria’s Nominal GDP
“This performance is higher when compared to the fourth quarter of 2020 which recorded aggregate GDP of N43,564,006.29 million, indicating a year-on-year nominal growth rate of 13.11%.
“The nominal GDP growth rate in Q4 2021 was higher relative to 10.07% growth recorded in the fourth quarter of 2020 but lower compared to 15.41% growth recorded in the preceding quarter. 2021 annual nominal growth stood at 13.92%.
For better clarity, NBS said the Nigerian economy has been classified broadly into the oil and non-oil sectors. #Nigeria’s Economy Expands 3.40% in 2021
