By Jeph Ajobaju, Chief Copy Editor
Gross Domestic Product (GDP) rose 5.01 per cent year-on-year (YoY) in the second quarter of 2021 (Q2 2021), in three straight quarters of growth after slumps in Q2 2020 and Q3 2020, says the National Bureau of Statistics (NBS).
However, claims of economic growth in Nigeria are always weird as they contradict empirical evidence because, by all metrics, citizens have been getting poorer since Muhammadu Buhari became President six years ago.
Prices of food, housing, transportation, medical, and all of other human needs have been rising every week since 2020. Millions have joined the jobless market. Those who have jobs are poorly paid.
What is the point of claiming spurious economic growth when lives are not positively impacted?
Aliko Dangote, a billionaire industrialist, has pointed out that Nigeria is the only country in the world where GDP growth does not reflect in the wellbeing of citizens.
“More than 60 per cent of the population in the North West and North Eastern parts of Nigeria are in severe poverty. The situation has been compounded by falling oil prices,” Dangote lamented.
Nonetheless, the NBS said steady recovery since Q4 2020, spurred by gradual return of commercial activity and local and international travel, boosted economic indices in Q2 2021 compared to Q2 2020 when pandemic restrictions reigned nationwide.
Non-oil sector grew 6.74 per cent but oil sector declined 12.65 per cent YoY, according to NBS data, reported by Nairametrics.
Investment One
Non-oil sector grew from 90.75 per cent in Q1 2021 to 92.58 per cent in Q2 2021 but oil sector contribution declined from 9.25 per cent to 7.42 per cent.
Year to date, real GDP grew 2.70 per cent in 2021 compared to -2.18 per cent in half year ended June 30, 2020 (H1 2020).
Quarter on quarter, real GDP grew -0.79 per cent in Q2 2021 compared to Q1 2021, a slower economic activity than in Q1 2021 due largely to seasonality.
Oil sector
Oil sector contracted 12.65 per cent (YoY) in Q2 2021 a decrease of –6.02 percentage points compared to Q2 2020. Growth declined -10.44 percentage points against -2.21 per cent in Q1 2021.
In Q2 2021, average daily oil production stood at 1.61 million barrels per day (mbpd), -0.19 mbpd lower than 1.81 mbpd in Q2 2020 and -0.10 mbpd lower than 1.72 mbpd in Q1 2021.
Real GDP stood at -7.13 per cent in H1 2021 against -0.80per cent in H1 2020, reflecting lower oil output. Oil sector had -20.35 per cent growth in Q2 2021 compared to Q1 2021.
Non-oil sector
Non-oil sector grew 6.74 per cent in Q2 2021, higher by 12.80 percentage points compared to Q2 2020 and 5.95 percentage points above Q1 2021.
The sector was driven mainly by growth in Trade, Information and Communication (Telecommunication), Transportation (Road Transport), Electricity, Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco).
This reflects the easing of restrictions on movement, business and economic activity across the country compared to Q2 2020.
Fastest growing sectors
Electricity, gas, steam, and air conditioning supply had the highest YoY sectoral growth with 78.19 per cent, followed by transportation and storage (76.8 per cent).
Growth in other sectors include
· Trade (22.5 per cent)
· Water supply and waste management (18.5 per cent)
· ICT (5.5 per cent)
· Human health services (4.9 per cent)
