Despite headwinds that are bringing global economies to their knees, the Nigerian economy has been able to register substantial growth of 3.11% over the past year (year-on-year), according to a report released yesterday morning by the National Bureau Statistics (SNB).
But in the short term, the domestic economy actually contracted 14.66%, quarter-on-quarter (q/q).
This means that gross domestic product (GDP) increased by 3.11% between the first quarter of 2021 and the first quarter of 2022.
In contrast, GDP contracted by 14.66% between the fourth quarter of 2021 and the first quarter of 2022.
Analysts say this is possible as Nigeria has been able to sustain strong growth over the past six quarters thanks to significant expansionary monetary policies by the Central Bank of Nigeria (CBN).
A cursory review of the report shows that the non-oil sector has driven the growth recorded in the Nigerian economy, largely thanks to the telecommunications, banking and agriculture sectors.
The growth rate in the first quarter of 2022 was higher than the growth rate of 0.51% recorded in the corresponding period of 2021 by 2.60% points and lower than the 3.98% recorded in the fourth quarter of 2021 by 0.88% dots.
The oil sector of the Nigerian economy contracted by 26.04% (year-on-year) in the first quarter of 2022, indicating a decline of 23.83% compared to the rate recorded in the corresponding quarter of 2021.
Nigeria recorded an average daily oil production of 1.49 million barrels per day (mbpd) in the first quarter of 2022, lower than the average daily production of 1.72 mbd recorded in the same quarter of 2021 by 0.23 mbd and lower to fourth quarter 2021 production volume of 1.50 mbpd by 0.01 mbpd.
On the other hand, the non-oil sector grew by 6.08% in real terms during the reference quarter (first quarter of 2022). This rate was 5.28 percentage points higher than the rate recorded in the same quarter of 2021 and 1.34 percentage points higher than in the fourth quarter of 2021.
The non-oil sector was driven in the first quarter of 2022 mainly by Information and Communication (Telecommunications); Exchange; Finance and Insurance (Financial Institutions); Agriculture (plant production); and manufacturing (food, beverages and tobacco), representing positive GDP growth.
