Six sectors performed very well and helped Nigeria’s economy record positive growth of 3.11% in the first quarter of the year, Q1’2022.
Each of the six sectors recorded more than 5% per cent growth in Q1’22 compared to the performance in the corresponding period of 2021, Q1’21.
According to the National Bureau of Statistics, NBS, in its just released Nigerian Gross Domestic Product Report (Q1 2022), the six sectors led the 16 sectors that recorded growth in Q1’22 and thereby helped the economy overcome the contraction recorded in three sectors.
The Gross Domestic Product, GDP, measures total goods and services produced in a place over a period of time. While the nominal GDP is goods and services measured in current prices, the real GDP is goods and services measured in price of a particular year (constant price).
The NBS reported that the 3.11 per cent GDP growth in Q1’22 was driven by the Non Oil sector which expanded by 6.08 per cent YoY in Q1’22, as against the 26.04 per cent YoY contraction recorded by the Oil Sector in the same quarter.
Top Performing Sectors & Growth rate
The top performing six sectors according to the NBS are Manufacturing, Water Supply, Sewerage, Waste Management and Remediation, Trade, Information & Communication, the Finance and Insurance Sector, and Human Health and Social Services.
The finance and Insurance sector recorded the highest growth of 23. 24 per cent. The sector consists of the two subsectors, Financial Institutions and Insurance, which accounted for 89.12% and 10.88% of the sector respectively in real terms in Q1 2022.
The contribution of Finance and Insurance to real GDP totaled 4.51%, higher than the contribution of 3.77% recorded in the first quarter of 2021 by 0.74% points, and higher than 3.66% recorded in Q4 2021 by 0.84% points.
The second highest performing sector was the Water Supply, Sewerage, Waste Management and Remediation sector which grew by 13.22 percent. The sector’s contribution to total real GDP was 0.23% in the first quarter of 2022; higher from its contribution of 0.21% in the same quarter of the previous year, and higher than in the immediate past quarter where it contributed 0.16%.
The Information and Communication sector came third with 12.07% growth in Q1’22. Of total real GDP, the sector contributed 16.20% in 2022 first quarter of 2022, higher than in the same quarter of the previous year in which it represented 14.91% and higher than the preceding quarter in which it represented 15.21%.
The Trade sector was the fourth highest performing sector with growth of 6.54% in Q1’22. The Trade sector contributed 16.13% to the nation’s real GDP in Q1’22, higher than the 15.61% in the previous year, and higher than the 15.66% recorded in the 2021 fourth quarter.
Coming fifth is the Human Health and Social Services sector with 5.91% in Q1’22. The contribution of sector real GDP was 0.73% in Q1 2022, relatively higher than the figure recorded in Q1 2021 and up from the 0.66% recorded for the preceding quarter.
The manufacturing sector recorded the 6th highest growth of 5.89% in Q1’22. Real contribution to GDP in 2022 first quarter of 2022 was 10.20%, higher than the 9.93% recorded in the first quarter of 2021 and higher than the 8.46% recorded in the fourth quarter of 2021.
The Manufacturing sector is comprised of thirteen activities: Oil Refining; Cement; Food, Beverages and Tobacco; Textile, Apparel, and Footwear; Wood and Wood products; Pulp Paper and Paper products; Chemical and Pharmaceutical products; Non-metallic Products, Plastic and Rubber products; Electrical and Electronic; Basic Metal and Iron and Steel; Motor Vehicles and Assembly; and Other Manufacturing.
Other Sectors That Recorded Growth
Other sectors that recorded growth in Q1’22 are Construction sector (4.83%), Real Estate Services (4.44%), Administrative and Support Services (3.73%), Agriculture (3.16%), Other Services (3.14%), Arts, Entertainment and Recreation (2.3%), Accommodation and Food Services (1.93%), Public Administration (1.92%), and Education (1.87%).
Sectors That Contracted
However, the following three sectors contracted in Q1’22. They are Mining & Quarrying (-25.89%), Electricity, Gas, Steam and Air Conditioning Supply (-11.2%) and Transportation and storage (-17.41%).