Nigeria’s Services sector lifts GDP by 3.52% in Q4 2022

Latest report from the National Bureau of Statistics (NBS) has revealed that Nigeria’s Gross Domestic Product (GDP) grew by 3.52 per cent in the fourth quarter of 2022 on a year-on-year basis.

The NBS said this in the Nigerian Gross Domestic Product Report Q4 2022 released in Abuja on Friday.

According to the report, this followed a growth of 2.25 per cent in the third quarter of 2022 and 3.98 per cent in the fourth quarter of 2021.

The report said the performance of the GDP in the fourth quarter of 2022 was driven mainly by the services sector, which recorded a growth of 5.69 per cent and contributed 56.27 per cent to the aggregate GDP.

It said although the agriculture sector grew by 2.05 per cent in the fourth quarter, its performance was significantly hampered by severe incidences of flood experienced across the country.

“This accounted for lesser growth relative to the fourth quarter of 2021 which was 3.58 per cent.’’

The report, however, said the Industry sector was yet challenged recording -0.94 per cent growth and contributing less to the aggregate GDP relative to Q3 2022 and Q4 2021.

It said overall, the annual GDP growth rate in 2022 stood at 3.10 per cent, from the 3.40 per cent reported in 2021.

“Thus, the performance of agriculture and industry reduced in 2022 relative to 2021, while the performance of the services sector improved in 2022.’’

The report said in Q4 of 2022, aggregate GDP stood at N56, 757,889.95 million in nominal terms

“This performance is higher when compared to the fourth quarter of 2021 which recorded aggregate GDP of N49,276,018.23 million, indicating a year-on-year nominal growth of 15.18 per cent.’’

A breakdown by sector showed that crude oil production in the fourth quarter of 2022 recorded an average daily oil production of 1.34 million barrels per day (mbpd).

“This was higher than the third quarter of 2022 production volume of 1.20mbpd by 0.14mbpd.’’

The NBS said the oil sector contributed 4.34 per cent to the total real GDP in Q4 2022.

The report said this showed a decrease from the figures recorded in Q4 2021 and Q3 2022, where it contributed 5.19 per cent and 5.66 per cent.

It said the total annual contribution of oil to aggregate GDP in 2022 was 5.67 per cent.

The NBS said the non-oil sector grew by 4.44 per cent in real terms during the reference quarter (Q4 2022).

The report said the non-oil sector in Q4 2022 was mainly driven by activities in Information and Communication (Telecommunication), Trade, and Agriculture (Crop Production).

“Others are Financial and Insurance (Financial Institutions), Manufacturing (Food, Beverage and Tobacco), Real Estate and Construction, all accounting for positive GDP growth.’’

It said in real terms, the non-oil sector contributed 95.66 per cent to the nation’s GDP in the fourth quarter of 2022.

The NBS said this was higher than the share recorded in Q4 2021 which was 94.81 per cent and higher than Q3 2022 recorded at 94.34 per cent.