GDP grows 3.11% on the back of non-oil sector contribution
By Jeph Ajobaju, Chief Copy Editor
Gross Domestic Product (GDP) climbed 3.11 per cent year-on-year (YoY) in the first quarter ended March 2022 (Q1 2022), marking six straight quarters of rises in the trajectory of Nigeria’s economy.
The latest GDP report from the National Bureau of Statistics (NBS) disclosed that Q1 2022 growth rate was 2.60 percentage points higher than 0.51 per cent in Q1 2021, but 0.88 points lower than 3.98 per cent in Q4 2021.
GDP also contracted 14.66 per cent in Q1 2022 versus Q4 2021.
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Oil sector dips 26%
Oil sector shrank 26.04 per cent YoY in Q1 2022, a decrease of 23.83 percentage points against Q1 2021, according to the NBS, per reporting by Nairametrics.
Oil production was 1.49 million barrels per day (mbpd) in Q1 2022, some 0.23 mbpd lower than 1.72 mbpd in Q1 2021 and 0.01mbpd lower than 1.50 mbpd in Q4 2021.
Non-oil sector contributes 93%
Non-oil sector grew 6.08 per cent in Q1 2022, higher by 5.28 points compared with Q1 2021 and by 1.34 points against 2021.
The sector was driven in Q1 2022 mainly by
- Information and Communication (Telecommunication)
- Trade
- Financial and Insurance (Financial Institutions)
- Agriculture (Crop Production)
- Manufacturing (Food, Beverage & Tobacco)
Non-oil sector contributed 93.37 per cent to GDP and oil sector 6.63 per cent in Q1 2022.
Nairametrics reports that Nigeria has been able to maintain strong growth in the past six quarters on the back of significant expansionary monetary policy of the Central Bank of Nigeria (CBN).
Non-oil sector drove the growth, largely due to the contributions of subsectors such as telecommunication, banking, and agriculture.
Economic leakages
Leakages and corruption in tax administration are responsible for low treasury revenue which triggers a double whammy of budget implementation hindrance and borrowing that balloons national debt.
Vice President Yemi Osinbajo made the point in Abuja and stressed the need for rapid digitalisation of Nigeria’s economy to rank it among the top in the world.
He spoke at the 24th Annual Tax Conference on “Global Disruption, Taxation and Digitalisation: Implications For Socio-Economic Development” where he was represented by Federal Inland Revenue Service (FIRS) Chairman Muhammed Nami.
Osinbajo insisted that insecurity and all other criminal acts can only be tackled if the government has adequate revenue. He urged the Chartered Institute of Taxation of Nigeria (CITN) and other Nigerians to comply with tax laws.