Nigeria’s transportation and financial sectors led the list of the fastest-growing sectors in the third quarter of 2022, printing real growths of 41.59% and 12.7%, respectively.
This is contained in the Q3 2022 Gross Domestic Product (GDP) report released by the National Bureau of Statistics (NBS).
The Nigerian economy expanded by 2.25% in real terms year-on-year in Q3 2022, largely due to positive movement in the non-oil sector. However, the growth was at a slow pace compared to the previous quarter (3.54%) due to local and international constraints.
Meanwhile, in broad sectoral disaggregation, fifteen of the nineteen sectors recorded a year-on-year positive growth, while four of them printed contractions. The sectors with negative growth in the period were manufacturing (1.91%), other services (2.67%), electricity (3.56%), and mining and quarrying (21.31%).
Some sectors, however, recorded recession. An economy is said to be in a recession if the aggregate GDP declines for two consecutive quarters. Two sectors remained in recession in broad sectoral classification. They are:
The electricity, gas, steam and air conditioning supply sector recorded a 3.56% contraction in its GDP, following an 11.48% contraction in Q2 2022 and an 11.2% decline in Q1 2022. The sector has maintained negative growth in the last three quarters, despite recording impressive growth rates in the previous year.
The mining and quarrying sector recorded a 21.31% contraction in the review quarter, on the back of an 11.09% contraction recorded in the previous quarter. The sector has been on a negative trajectory since Q2 2020 largely due to the performance of the crude petroleum and natural gas sector.
The Nigerian oil-producing sector has been bedeviled by the volatility in the global crude oil market, and the inability to produce at full capacity as a result of oil theft, vandalism, insecurity, and investment flight amongst others.
In terms of subsectors in recession, the oil refining sectors printed a 44.7% decline in Q3 2022 following the 42.12% decline recorded in Q2 2022. Textile, Apparel and footwear, rail transport, and pipeline recorded negative GDP growths for at least two successive quarters.