Nigeria’s worst-performing sectors in Q2 2022
The Nigerian economy grew by 3.54 percent in the second quarter of 2022, up from a growth rate of 3.11 percent in the first quarter, according to the National Bureau of Statistics (NBS).
“This growth rate declined from 5.01 percent in the second quarter of 2021 when rapid growth was recorded following the toll the COVID-19 pandemic exacted on the economy in Q2 2020. In addition, the recent rising prices have adversely impacted on the second quarter of 2022 performance,” the NBS said in a report.
According to the report, the following are the worst-performing sectors:
Oil refining
The oil refining sector contracted by -42.12 percent in the second quarter of 2022, compared with a contraction of -46.78 percent in the same period last year.
The sector also recorded a contraction of -44.26 percent in the first quarter of 2022.
Rail transport and pipelines
The rail transport and pipelines sector contracted -37.90 percent in the second quarter of 2022, compared with a growth of 53.28 percent in the second quarter of 2021.
The sector recorded a growth of 124.54 percent in the first quarter of 2022.
Metal ores
Metal ores contracted by -25.48 percent in the second quarter of 2022, compared with a growth of 21.12 percent in the same period last year.
The sector recorded a growth of 30.76 percent in the first quarter of this year.
Crude petroleum and natural gas
Crude petroleum and natural gas contracted by -11.77 in the second quarter of 2022, compared with -12.65 in the same period last year.
The sector shrank by -26.04 percent in the first quarter of 2022.
Electricity, gas, steam and air conditioning supply
Electricity, gas, steam, and air conditioning supply contracted by -11.48 percent in the second quarter of 2022, compared with a growth of 78.16 percent in the same period last year.
The sector contracted -11.20 percent in the first quarter of 2022.
“Some of the sectors that contracted are the ones that are labour-intensive. Rail transportation suffered partly from the Kaduna-Abuja train attack,” analysts at Financial Derivatives Company said.
According to them, the slowing sectors (sectors that grew at a slower pace) are highly job-elastic and account for over 70 percent of the workforce.
“The aviation sector growth declined significantly due to increase in the price of aviation fuel and forex scarcity. Agric sector growth was largely affected by the planting season, while trade and manufacturing activities were affected by forex scarcity and weak consumer purchasing power,” they added.
