36.1 C
Abuja

Manufacturers, traders, transporters driving Nigeria’s growth -NBS data

Related

3mins read

THE Gross Domestic Product (GDP) data for the second quarter (Q2) of 2020 released by the National Bureau of Statistics (NBS) on Thursday showed that manufacturers, traders and transporters were among economic agents driving Nigeria’s economy.

According to the NBS data, nominal GDP growth of the manufacturing sector in the Q2 of 2021 was recorded at 38.33 per cent (year-on-year), while real GDP growth in the sector stood at 3.49 per cent (year on year).

Nominal GDP calculates GDP using current prices, but real GDP makes adjustments for inflation. In economics, real GDP is taken more seriously because it reflects the true state of the economy.

Manufacturing involves sub-sectors adding value to raw products such as oil refining; cement; food, beverages and tobacco; textile, apparel, and footwear; chemical and pharmaceutical products, among others.

In the same vein, the transport and storage sector grew by 112.56 per cent in nominal terms in the second quarter of 2021 (year on year), while real GDP grew by 76.81 per cent in the same period.

In the same quarter, the nominal year-on-year growth rate of trade stood at 23.27 per cent, just as real growth was 22.49 per cent.

Agriculture grew by 6.36 per cent nominally and 1.30 per cent in real terms in the period under review.

- Advertisement -

Also, the construction sector grew by 47.11 per cent in nominal terms (year on year)  and 3.70 per cent in real terms within the period.

Electricity, gas, steam and air conditioning supply sector recorded a year-on-year growth of 114.30 per cent in nominal terms and 78.16 per cent in real terms.

The NBS report further revealed that Nigeria’s GDP, which measures the total value of all economic activities each year, grew by 5.01 percent in the second quarter of 2021.

According to the NBS, mining and quarrying, information and communication, public administration, education, and other services reported negative growth

The report revealed that during the second quarter of 2021, average daily oil production stood at 1.61 million barrels per day (mbpd), indicating a drop of 0.1 mbpd over the daily average production of 1.72 mbpd recorded in quarter one.

The NBS also revealed that the oil sector contributed 7.42 per cent to the total GDP in second quarter of 2021 in real terms, a drop from its contribution in quarter one where it contributed 9.25 percent. This indicates that the oil sector did not perform at its best in the period under review.

The non-oil sector contributed 92.58 percent to the nation’s GDP in the second quarter of 2021, higher from its contribution in quarter one, which was 90.75 percent.

- Advertisement -

The non-oil sector was driven mainly by growth in trade, transportation (road transport), electricity, agriculture (crop production) and manufacturing (food, beverage & tobacco), reflecting the easing of movement, business and economic activity across the country.

 

Director-General of Lagos Chamber of Commerce and Industry (LCCI) Chinyere Almona said the loss of jobs due to the negative effects of the pandemic might have driven more people into the retail trade, commerce, and logistics.

“The positive growth in the transport subsectors like road and rail transport may have also had some positive impact on trade with the easing of movement. This is also evident that the Nigerian economy is recovering fast and sustained by the reduction in supply chain disruptions, especially as there was no serious lockdown on economic activities in the second quarter,” she said.

Almona said if the situation was sustained, the growth projections for Nigeria would be reviewed upwards in the coming weeks.

She, however,  cautioned that the country must watch and respond appropriately to the major threats to this growth performance such as the third wave of COVID-19 infections which could lead to restrictions of movement, the rising spate of insurgency, banditry, kidnapping, and the persistent farmer-herder conflicts.

Economist and Private Sector Advocate Muda Yusuf said many of the sectors that posted impressive growth numbers did not contribute significantly to the GDP.

“The GDP numbers suggest the need to reset, rejjig and reform key sectors of the economy. We need to fix issues around regulatory environment,  tax environment and the multitude of levies imposed on businesses by all levels of government, foreign exchange policies,  ports environment,  and other structural bottlenecks to productivity in the economy,” he said.
Yusuf said there were still  worries about the macroeconomic challenges reflecting on spiraling inflation,  weakening of the currency, forex market illiquidity,  and spiking debt profile, among others.
“The security situation remains a major source of risk inhibiting investments, whether domestic or foreign.  It is good to celebrate the GDP growth numbers,  but this should be done cautiously.
“The impact of the GDP growth on citizens welfare and the productivity in the investment environment are crucial. These are the metrics that matter most, ultimately.  The GDP figures are not ends in themselves,  they are means to an end.”
- Advertisement -

 

 

 

 

 

 

Head of Data Unit, International Centre For Investigative Reporting, ICIR.
Shoot me a mail at [email protected]

If you or someone you know has a lead, tip or personal experience about this report, our WhatsApp line is open and confidential for a conversation

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Support the ICIR

We need your support to produce excellent journalism at all times.

Recent

Forty persons dead in Kano boat mishap

FORTY persons have lost their lives to a tragic boat mishap in Kano State. Chief...

NCDC confirms two cases of Omicron variant in Nigeria

THE Nigerian Centre for Disease Control (NCDC) has confirmed the first two cases of...

White paper: Lagos govt describes Lekki Toll Gate killings as ‘assumptions’

THE Lagos State Government has rejected that nine persons were killed when the Nigerian...

Wike’s N7bn suit against ThisDay newspaper adjourned to January 2022

A N7 billion libel suit against ThisDay newspaper and its management has been adjourned...

Borno government commits 14% of 2022 budget to education

THE Borno State Government has earmarked 14.2 per cent of its 2022 budget to...
Advertisement

Most Read

Advertisement

Subscribe to our newsletter

Advertisement