Nigeria’s GDP Grows By 3.52% Despite Slowing Down To 3.10% In 2022

Nigeria’s Gross Domestic Product (GDP) growth rate grew by 3.52% (year-on-year) in real terms in the fourth quarter of 2022 (Q4 2022). This is despite the 3.10% drop experienced in the year.

According to the National Bureau of Statistics (NBS), the economy grew in Q4 when compared to the 2.25% GDP in the preceding quarter of the year.

The GDP Report for Q4 2022, which was cited by BizWatch Nigeria, has it that the aggregate GDP stood at N56.76 trillion compared to N49.28 trillion in Q4 2021, indicating a year-on-year nominal growth of 15.18%.

Real GDP stood at N21.04 trillion in Q4 2022.

Performing sectors in the economy

Nigeria’s GDP was largely driven by the non-oil sector which accounted for 95.66% of growth while the oil sector contributed 4.34%.

The average daily oil production increased to 1.34 million barrels per day (mbpd), in the quarter under review compared to 1.20 mbpd in the preceding quarter but lower than the 1.50mbpd recorded in the same quarter of 2021.

NBS stated that the GDP performance in Q4 was driven mainly by the services sector which contributed 56.27% to growth.

Agriculture contributed 24.90% to nominal GDP in Q4, but lower than the 27.55% recorded in the preceding. Overall, in real terms, the sector contributed 24.05% in 2022.

The NBS pointed out that agriculture was significantly hampered by severe incidences of flood experienced across the country, accounting for lesser growth relative to the fourth quarter of 2021 which was 3.58%.

The sector thus recorded -0.94% growth and contributed less to the aggregate GDP relative to the third quarter of 2022 and the fourth quarter of 2021.

Manufacturing contributed 8.40% to real GDP lower than 8.59% in Q3 and 8.46% in the corresponding quarter.

Trade’s contribution to nominal GDP stood at 13.20% in Q4, higher than 12.45% in the preceding quarter.

Furthermore, the information and communication sector contributed 16.22% to growth in Q4, higher than 15.35% in the preceding quarter and 15.21% in Q4 2021. The sector contributed 16.51% to GDP in 2022, higher than the 15.51% reported last year.