- Real GDP size now N16.69trn
Nigeria reported a real growth of 5.01 percent year on year in its gross domestic product (GDP) to N16.69 trillion in the second quarter of 2021, indicating a steady recovery from the recession experienced same period a year ago. The steady growth was largely driven by the return of business and economic activity near levels seen prior to the nationwide implementation of COVID-19 related restrictions.
According to a report just published by the National Bureau of Statistics, the significant increase in growth and performance was accounted for by the gradual return of commercial activity, as well as local and international travel, relative to the second quarter of 2020 when nationwide restrictions took effect.
Also, this portends that in a six months period, (year to date), real GDP grew 2.70 percent in 2021 compared to the negative growth of 2.18 percent for the first half of 2020. On the other hand, quarter on quarter, real GDP grew at a negative of 0.79 percent in Q2 2021 compared to Q1 2021, reflecting slightly slower economic activity than the preceding quarter due largely to seasonality.
Still from the report by the Abuja-based statistics office, real growth in the oil sector grew negatively by 12.65 percent year on year, indicating a 6.20 percent decrease relative to the growth rate recorded in the corresponding quarter of 2020. Also, for the first half of the year, real GDP growth of the oil sector grew by 7.13 negatively when compared to the same period in 2020 where the sector recorded -0.8 percent growth. The negative performance in the first half of the year can be attributed to the performance reflecting lower oil output.
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Elsewhere, the non-oil sector grew by 6.74 percent in real terms during the reference quarter and was higher by 12.80 percent points compared to the rate recorded in the same quarter of 2020 and 5.95 percent points higher than the first quarter of 2021. The positive rally in the non-oil sector was driven mainly by growth in Trade, Information and Communication (Telecommunication), Transportation (Road Transport), Electricity, Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco), reflecting the easing of movement, business and economic activity across the country relative to the same period a year earlier.
Meanwhile, in real terms, the non-oil sector contributed 92.58 percent to the nation’s GDP in the second quarter of 2021, higher from shares recorded in the second quarter of 2020 which was 91.07 percent and the first quarter of 2021 recorded as 90.75 percent.