Nigeria’s finance and transport sectors topped the list of fastest growing sectors in the third quarter of 2022, registering real growths of 41.59% and 12.7%, respectively.
This is contained in the Third Quarter 2022 Gross Domestic Product (GDP) report published by the National Bureau of Statistics (NBS).
The Nigerian economy expanded 2.25% in real terms year-on-year in the third quarter of 2022, largely due to positive movement in the non-oil sector. However, growth was slow compared to the previous quarter (3.54%) due to local and international restrictions.
Meanwhile, in a broad sectoral breakdown, fifteen of the nineteen sectors registered positive year-on-year growth, while four of them registered contractions. The sectors with negative growth in the period were manufacturing (1.91%), other services (2.67%), electricity (3.56%) and mineral extraction (21.31%).
Sectors in recession: An economy is said to be in recession if aggregate GDP declines for two consecutive quarters. Two sectors remained in recession in the broad sector ranking. Is it so:
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- The electricity, gas, steam and air conditioning supply sector registered a contraction of 3.56% in its GDP, after a contraction of 11.48% in the second quarter of 2022 and a drop of 11.2% in the second quarter of 2022. first quarter of 2022. The sector has maintained negative growth in the last three quarters, despite posting impressive growth rates in the previous year.
- The mining and extraction sector registered a contraction of 21.31% in the review quarter, after the contraction of 11.09% registered in the previous quarter. The sector has been on a negative trajectory since the second quarter of 2020, largely due to the performance of the crude oil and natural gas sector.
- Nigeria’s oil producing sector has been affected by the volatility of the global crude oil market and the inability to produce at full capacity as a result of oil theft, vandalism, insecurity and investment flight, among others.
- In terms of subsectors in recession, the oil refining sectors registered a 44.7% decrease in the third quarter of 2022 after the 42.12% decrease registered in the second quarter of 2022. Textiles, clothing and footwear, rail transport and oil pipelines registered negative GDP growth for at least two consecutive quarters.
Below are the fastest growing sectors in the Nigerian economy for the third quarter of 2022.
Transport and storage (41.59%): The transport and warehousing sector of the Nigerian economy grew by 41.59% in the third quarter of 2022, representing the fastest growing sector in the largest African economy. However, it grew at a slower pace compared to the previous quarter due to the contraction of the rail transport and oil pipelines subsector.
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- The breakdown shows that road transport, which represents 83.6% of the total sector, expanded by 49.68% year-on-year, slower than the 56.38% registered in the second quarter of 2022 but higher than the 21.11 % registered in the corresponding period of 2021.
- The water transport subsector expanded by 19.48%, a rebound from the 3.02% growth recorded in the second quarter of 2022.
- Air transport grew by 14.58%, transportation services expanded by 6.66%, while postal and courier services recorded year-on-year growth of 5.36% in real terms.
Finance and insurance (12.7%): The financial and insurance sector expanded by 12.7% year-on-year in real terms in the third quarter of the year, although slower than the 18.48% growth registered in the previous quarter and the 23.24% growth registered in the first quarter of 2022.
- The sector accounts for 3.49% of the national economy, with a quarterly estimate of N660.8 billion and an estimate of N2.9 trillion.
- In terms of breakdown, the financial subsector, which represents close to 90% of the sector, grew 12.03% year-on-year from the 20.06% registered in the previous quarter.
- The insurance subsector, for its part, registered an interannual growth of 19.09%, surpassing the 6.96% registered in the previous period.
Information and communication (10.53%): The ICT sector grew 10.53% year-on-year in Q3 2022, an improvement compared to the 6.55% registered in the previous quarter. The information and communications sector represents 15.4% of the national GDP.
- The telecommunications sector, which is made up of some of the largest companies in the country and represents 83.7% of the ICT sector, grew 10.53% year-on-year from 6.55% registered in the previous quarter.
- The publishing subsector posted growth of 12.06% in the quarter under review compared to growth of 3.43% in the second quarter of 2022. Film, sound recording and music posted growth of 22 .41%, while transmission registered a year-on-year growth of 6.58%.
- Arts, entertainment and recreation: 7.79%
- Accommodation and food services – 6.77%
- Construction – 5.52%
- Trade – 5.08%
- Human health and social services – 4.58%
- Real estate – 4.56%
- Administrative and support services
What you should know: Nigeria’s gross domestic product (GDP) grew by 2.25% year-on-year in real terms in the third quarter of 2022, a contraction from the 3.54% growth recorded in the previous quarter.
- In real terms, agriculture accounted for 29.67% of Nigeria’s aggregate GDP, growing from 23.24% in the second quarter. The industrial sector represented 18.37% and services 51.96%.
- The oil sector contributed 5.66% to aggregate real GDP in the third quarter, a decrease from its contribution of 6.33% in the previous quarter.
- The non-oil sectors registered a year-on-year growth rate of 4.27%, 0.50% points lower than in Q2 2022 and 1.13% points lower than the same period in 2021. Despite this, their participation in the contribution to GDP real aggregate increased both quarter-on-quarter and year-on-year by 0.67% and 1.83% respectively.