Nigeria's economy grew by 3.40% in 2021 at the fastest annual pace in seven years, relying more on the non-oil sector.
The National Bureau of Statistics (NBS) said this in its fourth-quarter GDP report on Thursday, stating that 3.98% was recorded in the quarter of last year, from 4.03% and 5.01% recorded in Q3 and Q2 2021, respectively.
The 3.4% GDP growth represents 5.32% points the 1.92% contraction recorded in 2020, exceeding the World Bank and International Monetary Fund, IMF’s 2021 projections of 2.5% and 2.7% for the country, respectively.
Growth in the last quarter of the year was however the slowest when compared to the two previous quarters. The GDP expanded 3.98% between October and December over the same quarter in 2020, less than 4.03% growth rate recorded in the third quarter and 5.01% recorded in the second quarter.
The fourth quarter growth, while slower, was the fifth straight quarter the nation recorded positive growth since the 2020 Covid-triggered recession that followed economic contraction of -6.10% and -3.62% in the second and third quarters of that year.
Compared to the third quarter of 2021, the last quarter grew 9.63%.
The total GDP stood at N49.28 trillion in nominal terms (when the rate has not been adjusted for inflation), while the real GDP rose to N20.33 trillion.
The performance of the economy found strength from the non-oil sector, mainly agriculture, which grew 4.73%. The oil sector which contributed 7.24% to the economy, declined by 8.06%.
Non-oil sector spurs growth
Transportation and storage sector, electricity and other notable non-oil sectors of the economy drove the significant growth recorded in 2021. For example, the transportation and storage sector recorded a 16.25% GDP growth in the review year as against the 22.26% contraction recorded in the previous year.
Also, electricity, gas, steam, and air conditioning supply recorded a 27.57% growth in real terms, overturning the 2.9% decline recorded in 2020, while the financial and insurance sector grew by 10.07% in 2021 as opposed to 9.37% growth printed in the previous year.
On the other hand, the information and communications sector, which was one of the best performing sectors during the pandemic, recorded a decline in its growth rate, as its GDP growth rate stood at 6.55% in 2021 compared to 13.18% recorded in the preceding year.
The slow growth recorded in the communications sector could be attributed to the halt in new sim registrations in December 2020 by the Nigerian Communications Commission (NCC), requesting for all subscribers to link their lines to their National Identity Numbers (NIN).
However, the agency has now lifted the ban and allowed for new sim registrations, which has now reflected in the numbers of active subscribers in the country.
