Nigeria has the non-oil sector and specifically, activities in Trade, Agriculture and Information and Communication Technology (ICT) to thank for a 4.03% growth in Gross Domestic Product (GDP) in Q3, 2021.
1st News reports that the performance of the non-oil sector outstripped that of the oil sector by a long mile.
The foregoing was part of the outcome of a report released by the National Bureau of Statistics (NBS) on Thursday..
A review of the report by the NBS; which classified the Nigerian economy into the oil and non-oil sectors; showed that the oil sector contributed a paltry 7.9% to real GDP in the quarter; compared to a massive 92.51% by the non-oil sector.
Interestingly, the performance of the non-oil sector further justifies the clarion call for the Federal Government to diversify the economy and de-emphasize its focus on the oil sector.
1st News can report that the non-oil sector, which was largely responsible for much of Nigeria’s third quarter growth was driven mainly by trade, ICT and agriculture; with other drivers such as Financial and Insurance (Financial Institutions); Manufacturing (Food, Beverage & Tobacco); and Transportation and Storage (Road Transport), accounting for positive GDP growth.
Agriculture (which contributed 26.57%), trade (with 14.93%) and ICT (with 14.20%) were the leading contributors to the GDP of Nigeria in the third quarter.
Equally important, the NBS revealed that the non-oil sector grew by 5.44 per cent in real terms during the reference quarter; higher by 7.95 per cent compared to the rate recorded in the same quarter of 2020; but 1.30 per cent lower than the second quarter of 2021.
“This sector was driven in third quarter 2021 mainly by trade, Information and Communication (Telecommunication). Other drivers include financial and insurance (financial institutions) and manufacturing (food, beverage and tobacco).
“Others are agriculture (crop production) and transportation and storage (road transport), accounting for positive GDP growth. In real terms, the non-oil sector contributed 92.51 per cent to the nation’s GDP in third quarter 2021; higher from share recorded in the third quarter of 2020 which was 91.27 per cent and lower than the second quarter of 2021 which recorded 92.58 per cent,” the NBS report revealed.
For the oil sector, the report revealed that Nigeria; in the third quarter of 2021; recorded an average daily oil production of 1.57 million barrels per day (mbpd).
This was lower than the daily average production of 1.67mbpd recorded in the same quarter of 2020 by 0.10mbpd; while also lower than the second quarter 2021 production volume of 1.61mbpd by 0.05mbpd. Additionally, the NBS data showed that real growth of the oil sector was –10.73 per cent (year-on-year) in quarter three 2021; indicating an increase by 3.16 per cent relative to the rate recorded in the corresponding quarter of 2020.
It added that the oil sector contributed 7.49 per cent to total real GDP in the quarter; down from figures recorded in the corresponding period of 2020 and up compared to the preceding quarter; where it contributed 8.73 per cent and 7.42 per cent respectively.