Inflation, oil theft reduce economic activity in Nigeria as GDP falls to 3.54% in Q2 2022

Rising inflation in Nigeria and a sharp decline in crude oil production due to pipeline vandalism and oil theft led to a decline in the gross domestic product (GDP) growth rate to 3.54 percent in the second quarter (2nd quarter). quarter 2022) of this year.

This is stated in the National Bureau of Statistics (NBS) GDP report released Friday in Abuja, which states that Nigeria’s economy grew by 3.54 percent in the second quarter, slower than the 5.01 percent recorded in the second quarter. the same period last year. .

According to the NBS report, GDP of 3.54 percent in Q2 2022 represents a decline from 5.01 percent recorded in Q2 2021, despite the negative impact of the COVID-19 pandemic on the Nigerian economy.

In its statement of GDP in the second quarter of 2022, the NBS said: “Nigeria’s gross domestic product (GDP) grew in real terms by 3.54% (year-on-year) in the second quarter of 2022.

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“This growth rate declined from 5.01% in the second quarter of 2021, as rapid growth was recorded after the toll the COVID-19 pandemic took on the economy in the second quarter of 2020.

“In addition, recent rising prices have negatively impacted Q2 2022 performance.

“The growth rate in the second quarter of 2022 decreased by 1.47 percentage points from the 5.01% growth rate recorded in the second quarter of 2021 and increased by 0.44 percentage points from 3. 11% in the first quarter of 2022.

“However, quarter-on-quarter, real GDP grew by -0.37% in the second quarter of 2022, reflecting lower economic activity in the second quarter of 2022.
than in the previous quarter.

“In the quarter under review, total GDP in nominal terms was N45,004,520.89 million. This one
the performance is higher compared to the second quarter of 2021, where an aggregate GDP of N39,123,713.32 million was recorded, indicating a nominal annual growth rate of 15.03%.

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“Nominal GDP growth in the second quarter of 2022 was higher than the growth of 14.99% in the second quarter of 2021 and higher than the growth of 13.25% in the previous quarter. For greater clarity, the Nigerian economy is roughly divided into the oil and non-oil sectors.”

A further breakdown of the NBS report shows that urban inflation rose 2.08 percent to 20.09 percent in July 2022, from 18.01 percent recorded in July 2021, while rural inflation reached 19.22 percent of the previous year. 16.75 percent in the corresponding period under scrutiny.

Inflation in Nigeria stood at 19.64 percent in July this year, the highest in the past 17 years. The last time inflation in the country was above 19.64 percent was in September 2005, when it peaked at 24.32 percent.

Increases in the food and core index led to a rise in inflation.

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