2022 GDP: Who’s hot and who’s not
Nigeria’s Gross Domestic Product (GDP) growth rate in 2022 stood at 3.10 percent, a 30 basis points decline from the 3.40 percent reported in 2021.
On a quarterly basis, GDP grew by 3.52 percent in real terms in the fourth quarter of 2022, following a growth of 2.25 percent in the third quarter of 2022 and 3.98 percent in the fourth quarter of 2021.
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 percent and contributed 56.27 percent to the aggregate GDP.
Despite obvious economic challenges, some sectors managed to outperform the broader economy in 2022.
Financial and Insurance
The growth rate of the sector in real terms in 2022 was 16.36 percent, 269 basis points higher than 10.07 percent in 2021.
The Finance and Insurance Sector consists of two sub-sectors, financial institutions, and insurance, in which the former accounted for 92.84 percent and the latter 7.16 percent of the sector respectively in real terms in Q4 2022.
The contribution of Finance and Insurance to real GDP totaled 3.95 percent, higher than the contribution of 3.66 percent recorded in the fourth quarter of 2021 by 29 basis points, and higher than 3.49 percent recorded in Q3 2022 by 46 basis points.
Transportation and Storage
The sector grew by 15.20 percent in 2022, 105 basis points lower than the 16.25 percent growth rate recorded in 2021, therefore contributing 1.48 percent to GDP.
On a quarterly basis, the transportation and storage sector grew by 0.78 percent in Q4 2022. This rate represents a decrease of 2,894 basis points relative to the same quarter of the previous year and a decrease of 4,081 basis points relative to the preceding quarter (41.59 percent).
The contribution of the sector to real GDP in the Q4 of 2022 was 1.61 percent, a fall from 1.65 percent recorded in the preceding year and higher than 1.34 percent recorded in the third quarter of 2022.
Six activities make up the transportation and storage sector: road transport, rail transport and pipelines, water transport, air transport, transport services, and post and courier services.
Amongst these, the air transport sub-sector grew the most by 26.23 percent in 2022, 653 basis points higher, compared to a growth rate of 19.70 percent in 2021. The road transport sub-sector recorded a growth rate of 15.14 percent in 2022, a 199 basis points decline from 17.13 percent in 2021.
Water Supply, Sewerage, Waste Management, and Remediation
The sector grew by 13.62 percent in 2022, lower than the 18.34 percent reported in 2021, contributing 0.23 percent to overall GDP in 2022.
On a quarterly basis, the real growth rate of the water supply, sewerage, waste management, and remediation sector in the fourth quarter of 2022 was recorded at 8.81 percent (year-on-year), 492 basis points higher than 3.89 percent in the third quarter.
Overall, its contribution to total real GDP was 0.17 percent in the fourth quarter of 2022, higher than its contribution of 0.16 percent in the same quarter of the previous year, and lower than the immediate past quarter where it contributed 0.19 percent.
Information and Communication
The information and communication sector contributed 16.51 percent to the overall GDP in 2022 and grew by 9.76 percent, higher than 6.55 percent in 2021.
On a quarterly basis, the sector recorded a growth rate of 10.35 percent in real terms, in the fourth quarter of 2022 from 10.53 percent in the previous quarter of 2022.
Of total real GDP, the sector contributed 16.22 percent in the 2022 fourth quarter, higher than in the same quarter of the previous year in which it represented 15.21 percent, and higher than the preceding quarter in which it represented 15.35 percent.
The information and communication sector is composed of the four activities of telecommunications and information services, publishing, motion picture, sound recording and music production, and broadcasting.
Trade
The trade sector grew by 5.13 percent in 2022, lower than the 8.62 percent growth rate it recorded in 2021. The total contribution of the sector in real terms in 2022 stood at 16 percent
In real terms, Trade’s growth rate stood at 4.54 percent in the fourth quarter of 2022, which was 54 basis points lower than in the preceding quarter at a 5.08 percent growth rate.
Trade’s contribution to GDP was 15.82 percent, higher than the 15.66 percent it represented in the previous year, and higher than the 15.35 percent recorded in the 2022 third quarter.
Mining and Quarrying
The mining & quarrying sector consists of crude petroleum and natural gas, coal mining, metal ore and quarrying, and other minerals sub-activities.
In real terms, the 2022 growth rate of the sector stood at -18.16 percent, lower than the -7.79 percent recorded in 2021.
On a quarterly basis, the mining and quarrying sector grew by –11.39 percent in the fourth quarter of 2022, higher by 9.92 basis points from -21.31 percent in the third quarter of 2022.
The contribution of mining and quarrying to real GDP in the quarter under review stood at 4.71 percent, lower than the rate of 5.50 percent recorded in the corresponding quarter of 2021 and lower than the 5.90 percent recorded in the third quarter of 2022.
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The annual total contribution of the sector in real terms in 2022 was 5.88 percent, lower than the 7.41 percent reported in 2021
Electricity, Gas, Stream, and Air Conditioning Supply
In real terms, the sector grew by -2.21 percent in 2022, lower than 27.57 percent in 2021, thereby contributing 0.45 percent to real GDP during the period.
In the fourth quarter of 2022, the sector grew by 15.22 percent, an increase from the growth rate of 2.78 percent recorded in the same quarter of 2021. When compared to the third quarter of 2022, there was an increase of 1,878 basis points from -3.56 percent recorded.
The contribution of this sector to real GDP in the fourth quarter of 2022 was 0.53 percent, higher than the 0.47 percent recorded in Q4 2021.
Other Services
Other services grew by 1.07 percent in 2022, higher than -0.16 percent in 2021. Other Services’ real GDP grew by 0.06 percent in Q4 2022.
This growth was lower by 157 basis points than the growth recorded in the same period of the previous year, and higher by 273 basis points from Q3 2022.
The sector contributed 3.27 percent to real GDP in Q4 2022, lower than the 3.39 percent recorded for the corresponding quarter of 2021 and higher than the 2.23 percent recorded in Q3 2022.
Agriculture
Four sub-activities make up the agricultural sector: crop production, livestock, forestry, and fishing. In 2022, the sector growth rate of the sector stood at 1.88 percent, lower than the 2.13 percent reported in 2021.
The total contribution of the agriculture sector in 2022 was 25.58 percent. On a quarterly basis, the agricultural sector in the fourth quarter of 2022 grew by 2.05 percent in real terms, a decrease of 153 basis points from the corresponding period of 2021, and an increase of 71 basis points from the preceding quarter which recorded a growth rate of 1.34 percent.
NBS said, “although the agriculture sector grew by 2.05 percent in the reference period, its performance was significantly hampered by severe incidences of flood experienced across the country, accounting for lesser growth relative to the fourth quarter of 2021 which was 3.58 percent.”
Public Administration
This sector recorded a growth rate of 1.90 percent in 2022, higher than the negative growth of 0.30 percent in 2021. The total contribution of the sector in real terms in 2022 stood at 2.00 percent, lower than the 2.03 percent reported in 2021.
In real terms, the sector recorded a growth rate of 1.43 percent in Q4 2022, higher by 31 basis points and lower by 89 basis points from the Q4 2021 and the Q3 2022 rate respectively.
The contribution of Public Administration to real GDP stood at 2.12 percent in Q4 2022, lower than the 2.17 percent recorded in Q4 2021 and higher than 2.05 percent in Q3 2022.
