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Nigeria’s Economy Records 3.40% Growth, Highest Since Buhari Became President In 2015

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Nigeria's Economy Records 3.4% Growth, Highest Since Buhari Became President In 2015

Nigeria’s Gross Domestic Product (GDP) which is a measure of the country’s economic performance has recorded a 3.4 percent growth in 2021.

This is according to the latest data released on Thursday by the National Bureau of Statistics (NBS) which was presented to newsmen in Abuja by the Statistician-General of the Federation Dr. Simon Harry.

The NBS data shows the country’s economy grew by 3.98% (year-on-year) in real terms in the fourth quarter of 2021 which represents the strongest growth rate since 2014.

Naija News reports this is also the first time the nation’s economy will grow above three percent since President Muhammadu Buhari came into power in 2015.

In 2014, the country’s economy recorded a 6.3 percent growth.

According to the latest NBS report, “Nigeria Gross Domestic Product (GDP) grew by 3.98%(year-on-year) in real terms in the fourth quarter of 2021, showing a sustained positive growth for the fifth quarter since the recession witnessed in 2020 when output contracted by -6.10% and -3.62% in Q2 and Q3 of 2020 under the Covid pandemic.

“The fourth quarter growth indicates a steady economic recovery accounting for annual growth of 3.40% in 2021.

“The Q4 2021 growth rate was higher than the 0.11% growth rate recorded in Q4 2020 by 3.87% points and lower than 4.03% recorded in Q3 2021 by 0.05% points. Nevertheless, quarter on quarter, real GDP grew at 9.63% in Q4 2021 compared to Q3 2021, reflecting a higher economic activity than the preceding quarter.”

The report added that the nominal growth rate for the period under review is higher than the same period in the year 2020.

“This performance is higher when compared to the fourth quarter of 2020 which recorded aggregate GDP of N43,564,006.29 million, indicating a year-on-year nominal growth rate of 13.11%. The nominal GDP growth rate in Q4 2021 was higher relative to 10.07% growth recorded in the fourth quarter of 2020 but lower compared to 15.41% growth recorded in the preceding quarter,” the NBS added.

“2021 annual nominal growth stood at 13.92%. For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors.”

Speaking on the report, Dr. Harry said: “I must state that the improvement being seen in the output growth in the last five quarters depicts a steady progress made in stemming the Covid-19 pandemic and the associated negative impact on livelihood, well-being, and the economy.

“Globally, many countries have witnessed an improvement in economic performances compared to 2020 when Covid-19 was endemic.

“Thus, economic recovery is a gradual process that requires consistent collective efforts to improve economic activities across the institutional sectors: Households, Non-profit Institutions Serving Households, Financial Corporations, Non-financial Corporations and the Government.

“However, in Nigeria the prospects of consolidating the recovery is glaring considering the improved economic performance over these periods of time.

“It is important to also mention that annual GDP growth of 2021 stands at 3.40%.

“Agriculture, Industry and Services contributed 26.84%, 18.05% and 55.11% respectively to GDP in current period. In contrast, Agriculture, Industry and Services contributed 26.95%, 18.77% and 54.28% respectively in fourth quarter 2020.

“This shows higher contribution of services in fourth quarter 2021 compared to fourth quarter 2020 as well as on annual basis in 2021.”