On Thursday, the National Bureau of Statistics (NBS) said Nigeria’s Gross Domestic Product (GDP) grew by 5.01 per cent in the second quarter of 2021.
This revelation came as a surprise to many observers because it was the first time the economy was making such a leap since 2014.
It means it was the first major growth under the current administration of President Muhammadu Buhari, who assumed office on May 29, 2015, and is expected to leave in 2023 after serving two terms of four years each.
Analysis of Nigeria’s GDP numbers for the period under review showed that the contribution of the oil sector reduced to7.42 per cent compared with 8.93 per cent in Q2 2020 and 9.25 per cent in Q1 2021.
The stats office said the real growth of the oil sector was -12.65 per cent on a year-on-year basis in the second quarter of 2021, a decrease of 6.02 per cent relative to the growth rate recorded in the second quarter of 2020.
Business Post observed that the decline in the sector was due to a downward trend in crude oil quota output which led to a decrease in the average daily oil produced in the country.
Due to this, in the period under review, the average daily oil production stood at 1.6 million barrels per day, which represented a decrease of 100,000 barrels in contrast to 1.72 million barrels per day recorded in the first quarter of 2021.
This happened as the country tried to meet the output cut instituted by the Organisation of the Petroleum Exporting Countries its allies (OPEC+).
This trend was also reflected in the year-on-year record which noted a difference of 190,000 barrels, compared to the average daily production of 1.81 million barrels per day recorded in the second quarter of 2020.
Giving more on the report of the oil sector, growth decreased by 10.44 per cent points when compared to Q1 2021 which was 2.21 per cent.
For the first half of 2021, real GDP was recorded at -7.13 per cent compared to -0.80 per cent for the first half of 2020, the performance reflecting lower oil output while on a quarter-on-quarter basis, the oil sector recorded a growth rate of -20.35 per cent in Q2 2021.
The oil sector is one of the two broader Nigerian sectors and is noted to be the backbone of the Nigerian economy, as it accounts for more than 85 per cent of the country’s revenue.
Nigeria is the largest crude oil-producing country in Africa but holds the position as the sixth-largest producer in the world.
– Business Post