Business Post Contributor
By Ashemiriogwa Emmanuel
While the oil sector contribution to Nigeria’s Gross Domestic Product (GDP) dropped, there was a better performance for the country’s non-oil sector in the second quarter of 2021 as it grew by 6.74 per cent in real terms.
Data from the Nigerian Bureau of Statistics (NBS) released last Thursday showed that the country saw a 5.01 per cent growth year-on-year.
During the reference quarter, growth in this segment of the country’s economy was higher by 12.8 per cent compared to the rate recorded in the same quarter of 2020 (-6.05 per cent) and 5.95 per cent points higher than the first quarter of 2021.
While the oil sector reduced its contribution to 7.42 per cent to the nation’s economy, the non-oil sector made a significant contribution of 92.6 per cent.
Comparatively, the percentage added by the sector is higher from 91.07 per cent recorded at the same time last year and the 90.6 per cent published for the first quarter of 2021.
The stats office noted that the growth in the sector during the quarter was majorly driven through Trade, Information and Communication (Telecommunication), Transportation (Road Transport), Electricity, Agriculture (Crop Production), and Manufacturing (Food, Beverage, and Tobacco).
Trade contributed immensely to the growth as the federal government lifted border closure in December 2020 after 16 months and the economy further reopened following COVID-19 restrictions and this led to a 21.7 per cent growth (year-on-year) from N4.6 trillion in Q2 2020 to N5.6 trillion in the same period this year.
In the second quarter of 2021, the sector recorded a growth rate of 5.55 per cent year on year, indicating a decrease of -9.54 per cent points compared to the second quarter of 2020. This change reflects people going back to the offices as they cut down on virtual work.
The Agricultural sector grew by 1.30 per cent in the second quarter of this year from 2.28 per cent and 1.58 per cent published for Q1 and Q2 last year, while the Manufacturing Sector improved from 3.40 per cent recorded in Q1 last year to 3.49 per cent within the period under review, indicating an 8.78 per cent when compared to the same period last year.
