Nigeria’s Crude Supply Drops, Economy Grows By 4 Per Cent- NBS

By Fola James

The Nigerian Bureau of Statistics, NBS has disclosed that the nation’s crude oil sales dropped by over 100,000 barrels, from 1.67 million barrels per day in the third quarter of 2020 to 1.57 barrels per day in the third quarter of this year.

This was made known in Abuja on Thursday by the statistician General of the Federation, Simon Harry who, however said the country’s economy grew by over four per cent in the third quarter of 2021.

He explained that the COVID 19 pandemic had serious effects on the nation’s economy in the first two quarters of the year.

Harry said “the contraction of quarters two and three of 2020 has resulted to positive growth as recorded consecutively for the last three-quarters of quarter four, 2020 with 0.11 per cent, quarter one, 2021 with 0.51 per cent and quarter two, 2021 with 5.01 per cent. This base effects continued to quarter three of 2021 recording a growth of 4.03 per cent.”

He said the positive result is an indication that the country has made progress following the CVOID 19  headwind which affected global economy last year.

“Globally, many countries have witnessed an improvement in economic performances compared to 2020 when Covid-19 was endemic. Thus, economic recovery is a gradual process that requires consistent collective efforts to improve economic activities across the institutional sectors.

“However, in Nigeria, the prospect of full recovery is glaring provided the current trend of improved economic performance is sustained in the rest of the year and beyond. It is important to also mention that annual GDP growth of 2021 stands at -1.92 per cent.”

According to NBS report aggregate GDP stood at N45.113 trillion in nominal term, a performance higher when compared with the third quarter of 2020, which recorded aggregate GDP of N39.089 trillion, indicating a year-on-year nominal growth rate of 15.41 per cent.

For the oil sector, the report said that the nation, in the third quarter of 2021 recorded an average daily oil production of 1.57 million barrels per day (mbpd).

This, it said, was lower than the daily average production of 1.67mbpd recorded in the same quarter of 2020 by 0.10mbpd and lower than the second quarter 2021 production volume of 1.61mbpd by 0.05mbpd.

It also said that real growth of the oil sector was –10.73 per cent (year-on-year) in quarter three 2021, indicating an increase by 3.16 per cent relative to the rate recorded in the corresponding quarter of 2020.

NBS stated that the oil sector contributed 7.49 per cent to total real GDP in the quarter, down from figures recorded in the corresponding period of 2020 and up compared to the preceding quarter, where it contributed 8.73 per cent and 7.42 per cent respectively.

The non-oil sector, the report said grew by 5.44 per cent in real terms during the reference quarter, higher by 7.95 per cent compared to the rate recorded in the same quarter of 2020 and 1.30 per cent lower than the second quarter of 2021.

“This sector was driven in third quarter 2021 mainly by trade, Information and Communication (Telecommunication), other drivers include financial and insurance (financial institutions) and manufacturing (food, beverage and tobacco),’ NBS said.

“Others are agriculture (crop production) and transportation and storage (road transport), accounting for positive GDP growth. In real terms, the non-oil sector contributed 92.51 per cent to the nation’s GDP in third quarter 2021, higher from share recorded in the third quarter of 2020 which was 91.27 per cent and lower than the second quarter of 2021 which recorded 92.58 per cent,’ the Bureau said.