Nigeria’s GDP expanded by 5.01 percent in the second quarter of 2021, the highest rate of growth since the fourth quarter of 2014.
This is according to the National Bureau of Statistics’ (NBS) second-quarter GDP data, which was released on Wednesday.
Following negative growth rates in the second and third quarters of 2020, this is the third straight quarter of growth.
“In the second quarter of 2021, Nigeria’s Gross Domestic Product (GDP) expanded by 5.01 percent (year-on-year) in real terms, marking three consecutive quarters of growth following negative growth rates in the second and third quarters of 2020,” according to the report.
“The growth rate in Q2 2021 was greater than the -6.10 percent rate in Q2 2020 and the 0.51 percent rate in Q1 2021 year on year, showing a recovery of business and economic activity to levels seen before the nationwide adoption of COVID-19-related limitations.
“The considerable rise in growth performance compared to the second quarter of 2020, when statewide limitations took effect, was due to the steady recovery observed since the end of 2020, with the gradual restoration of business activity as well as local and international travel.”
Real GDP increased 2.70 percent year to date in 2021, compared to -2.18 percent in the first half of 2020. Nonetheless, real GDP grew at a negative 0.79 percent quarter over quarter in Q2 2021 compared to Q1 2021, indicating somewhat slower economic activity than the previous quarter due to seasonality.
The average daily oil output in the second quarter of 2021 was 1.61 million barrels per day (mbpd), down -0.19 mbpd from the 1.81 mbpd recorded in the same period of 2020 and -0.10 mbpd from the 1.72 mbpd recorded in the first quarter of 2021.
In Q2 2021, real growth in the oil sector was –12.65 percent (year-on-year), a decline of –6.02 percent points compared to the growth rate in the same quarter of 2020.
“During the reference quarter, non-oil sector performance increased by 6.74 percent in real terms (Q2 2021). The growth rate in the second quarter of 2021 was 12.80 percent greater than in the same quarter of 2020 and 5.95 percent higher than in the first quarter of 2021, according to the research.
“Growth in trade, information and communication (Telecommunication), transportation (Road Transport), electricity, agriculture (Crop Production), and manufacturing (Food, Beverage & Tobacco) drove the non-oil sector during the quarter, reflecting the ease of movement, business, and economic activity across the country compared to the same period a year ago.”