Nigeria has recorded a 5.1 percent year-on-year Gross Domestic Product (GDP) growth in the second quarter of 2021, the National Bureau of Statistics (NBS) states.
This was revealed in the latest economic report compiled by the NBS, released on Thursday titled, ‘Nigerian Gross Domestic Product Report (Q2 2021)’.
The report stated that the increase was representative of a 2.71 percent growth in 2021 against the -2.18 percent recorded in the first half of the previous year.
It said, “The Q2 2021 growth rate was higher than the -6.10% growth rate recorded in Q2 2020 and the 0.51% recorded in Q1 2021 year-on-year, indicating the return of business and economic activity near levels seen prior to the nationwide implementation of COVID-19 related restrictions,” the report read.
“The steady recovery observed since the end of 2020, with the gradual return of commercial activity, as well as local and international travel, accounted for the significant increase in growth performance relative to the second quarter of 2020 when nationwide restrictions took effect.
“Year to date, real GDP grew 2.70% in 2021 compared to -2.18% for the first half of 2020.”
The NBS said that the country’s economy saw a -0.79 percent growth in the second quarter of 2021 against the first half of the year.
It added that the aggregate GDP (nominal) was N39,123,713.32 million in Q2 2021, more than the N34,023,197.60 million recorded in Q2 2020, representing a 14.99 percent growth rate.
“The Q2 2021 nominal growth rate was also higher than 12.25% growth recorded in Q1 2021,” the report read.
Oil Sector Growth
Nigeria’s daily oil production stood at 1.61 million barrels bpd, lower than the 1.81mbpd in the second quarter of 2020, falling by -0.19mbpd.
The oil sector saw a growth rate of -12.65 percent (year-on-year) in Q2 2021, representing a -6.02 percent decrease against the growth rate recorded in the same period in 2020.
The report said, “For the first half of 2021, real GDP was recorded at -7.13%, compared to -0.80% for the first half of 2020, the performance reflecting lower oil output. Quarter-on-quarter, the oil sector recorded a growth rate of -20.35% in Q2 2021.
“The Oil sector contributed 7.42% to total real GDP in Q2 2021, down from figures recorded in the corresponding period of 2020 and down compared to the preceding quarter, where it contributed 8.93% and 9.25% respectively.”
There was a 6.74 percent growth in Nigeria’s non-oil sector in the second quarter of 2021, higher than what was recorded in the same quarter in 2020 by 12.80 percent and 5.95 percent recorded in Q1 2021.
Sectors that drove growth in the economy in Q2 2021 include Trade, Information and Communication (Telecommunication), Transportation (Road Transport), Electricity, Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco).
The growth in the above-listed sectors was attributed to “the easing of movement, business and economic activity across the country relative to the same period a year earlier.”
“In real terms, the Non-Oil sector contributed 92.58% to the national GDP in the second quarter of 2021, higher from shares recorded in the second quarter of 2020 which was 91.07% and the first quarter of 2021 recorded as 90.75%,” the report added.