GDP growth falls to lowest level in 2022, workers in 5 sectors face job losses
- The Nigerian economy has dropped to its lowest level in 2022 with five sectors still in recession
- According to the most recent statistics, the nation’s GDP growth increased by 2.25 per cent in the third quarter of the year, the lowest rate for 2022
- Sectors like transport, mining, services, and technology played a huge part in the decline of the GDP growth for Q3, 2022
The National Bureau of Statistics (NBS) has revealed that in the third quarter, Nigeria recorded a growth of 2.25 per cent year-on-year in real terms.
NBS stated this in its GDP official data report released on Thursday on its website.
However, according to the data, the growth recorded in the third quarter is down from 3.54 per cent in Q2 and 4.03 per cent in the same period last year.
Why GDP growth fell
The NBS in its report noted that the reduction in growth is attributable to the base effects of the recession and the challenging economic conditions that have impeded productive activities
PAY ATTENTION: Follow us on Instagram – get the most important news directly in your favourite app!
“The Q3 2022 growth rate decreased by 1.78% points from the 4.03% growth rate recorded in Q3 2021 and decreased by 1.29% points relative to 3.54% in Q2 2022. “
“However, quarter-on-quarter, real GDP grew at 9.68% in Q3 2022, reflecting a higher economic activity in Q3 2022 than the preceding quarter.”
In the quarter under review, NBS revealed that the aggregate GDP stood at N52.25 trillion in nominal terms, Punch report shows.
This performance is higher than the third quarter of 2021, which recorded an aggregate GDP of N45.11 trillion, indicating a year-on-year nominal growth rate of 15.83%.
“The nominal GDP growth rate in Q3 2022 was higher relative to the 15.41% growth recorded in the third quarter of 2021 and higher than the 15.03% growth recorded in the preceding quarter.
“For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors.”
Best performing sectors
Despite the drop, some sectors of the economy were shining lights helping Nigeria record another GDP growth.
These sectors are:
- Road Transport – 49.68%
- transport and storage- 41.59%
- Quarrying and Other Minerals- 39.61%
- Metal Ores- 36.24%
- Motion Pictures, Sound recording and Music production – 22.41%
- Water Transport -19.48%
- Insurance- 19.09%
- Air Transport- 14.58%
- Financial And Insurance- 12.70%
- Publishing- 12.06%
- Financial Institutions- 12.03%
five sectors in recession
A deeper investigation has revealed that five sectors of the economy are in recession, which might spell bad news for Nigerians engaged in these areas.
The lack of growth indicates that firms in the industries are struggling, which might indicate further problems.
The sectors are which are yet to record negative growth since the start of 2022 are:
- Crude Petroleum and Natural Gas
- Coal Mining
- Oil Refining
- Textile, Apparel and Footwear
- Electricity, Gas , Steam And Air Conditioning Supply
Nigeria’s oil savings account is now in the thousands
In another report showing how stretched the economy of Nigeria is Legit.ng shows that Nigeria’s oil savings have been depleted.
ECA is a savings account retained by the Federal Government and is funded by crude oil sales that are higher than the budgeted oil price benchmark
The report shows that the federal government has been unable to add a dollar to the account but has made a consistent withdrawal