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Non oil sector drives economy as Q3 GDP grew by 2.25%

Nigeria’s Gross Domestic Product (GDP) grew by 2.25% (year-on-year) in the third quarter (Q3) of 2022.

In the Q3 figure released on Thursday by National Bureau of Statistic NBS, the non oil sector contributed by 94% to the growth.

The report indicates that the third quarter GDP declined by 1.78% from 4.03% recorded in the same quarter in 2021.

This was attributed to the effects of recession and the challenging economic conditions that had impeded productive activities.

On month-on -month basis, the Q3 2022 GDP also decreased by 1.29% points relative to the 3.54% in Q2 of this year.

However, quarter-on-quarter, real GDP grew at 9.68% in Q3 2022, reflecting a higher economic activity in the third quarter than the preceding quarter, Q2.

In the quarter under review, the report shows that aggregate GDP stood at N52. 255 trillion in nominal terms.

This is higher compared to the third quarter of 2021 which recorded aggregate GDP of N45.113 trillion, indicating a year-on-year nominal growth rate of 15.83%.

The Oil Sector

The nation in the third quarter of 2022 recorded an average daily oil production of 1.20 million barrels
per day (mbpd), lower than the daily average production of 1.57mbpd recorded in the same quarter of 2021 by 0.37mbpd and lower than the second quarter of 2022 production volume of 1.43 mbpd.

The Non-Oil Sector

The non-oil sector grew by 4.27% in real terms during the reference quarter (Q3 2022). This rate was lower by 1.18% points compared to the rate recorded in the same quarter of 2021 and 0.50% points
lower than the second quarter of 2022.

According to the NBS, this sector was driven in the third quarter of 2022 mainly by Information and Communication (Telecommunication); Trade; Transportation (Road Transport); Financial and Insurance (Financial Institutions); Agriculture (Crop Production) and Real Estate.

In real terms, the non-Oil sector contributed 94.34% to the nation’s GDP in the third quarter of 2022, higher than the share recorded in the third quarter of
2021 which was 92.51% and higher than the second quarter of 2022 recorded as 93.67%.

Writing by Annabel Nwachukwu; Editing by Fany Olumoye