Nigeria’s GDP Expands 5.1% in the Second Quarter

Nigeria’s GDP Expands 5.1% in the Second Quarter

Nigeria’s gross domestic product (GDP) expands 5.1% in the second quarter of the fiscal year 2021 after a tepid outturn in the first three months of the year, the bureau of statistics figure shows.

According to data released by the National Bureau of Statistics (NBS) recently released real GDP growing by 5.01% year on year, strongly ahead of +0.51% reported in the first quarter.

This marks the third consecutive quarter of growth after the COVID-19 induced decline in Q2-20 and Q3-2020. Most investment analysts had taken a conservative stand with their projection in line with purchasing manager index data.

The growth outturn outperformed Cordros’ estimate whose analysts had expected the economy to rise 3.37% year on year, owing to a positive surprise from the non-oil GDP.

NBS data shows that the oil sector remained in the woods, contracting by 12.65% year on year as against a 2.21% drop in the previous quarter. 

Crude oil production averaged 1.61mb/d in the period, which is 11.05% year on year lower than the record achieved in Q2-2020. The oil sector contributed 7.42% to total GDP as against 9.25% contribution in the first quarter.

On the other hand, the non-oil sector grew faster by 6.74% year on year in Q2-2021 compare to +0.79% recorded in the first three months in the year. The non-oil sector contributed 92.58% to total GDP compare with 91.07% and 90.75% in Q2-2020 and Q1-2021, respectively.

Decomposing the GDP on a sectoral basis: Agriculture grew slower by 1.30% year on year, lower than +2.28% recorded in Q1-2021; Industries contracted by 1.23% compared to the growth of 0.94% in Q1-2021; while Services grew faster by 9.27% as against the previous slowdown in Q1-2021 when it dropped by 0.39% year on year.

In terms of contribution, services, agriculture, and industries, respectively, accounted for 55.66%, 23.78%, and 20.57% of overall output growth.

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Nigeria’s GDP Expands 5.1% in the Second Quarter