Nigeria’s Economy Grew At 3.40% in 2021, Fastest in Eight Years

Growth in the last quarter of the year was however the slowest when compared to the two previous quarters.

Nigeria’s economy grew in 2021 at the fastest annual pace in eight years, relying more on the non-oil sector.

The Gross Domestic Product expanded at 3.40 per cent last year, the most since 2014 when it grew at 6.22 per cent, the National Bureau of Statistics said Thursday.

The growth beat forecasts by the government. While the Ministry of Finance predicted a 2.5 per cent growth rate for the year, the Central Bank of Nigeria projected 3.1 per cent.

Growth in the last quarter of the year was however the slowest when compared to the two previous quarters. The GDP expanded 3.98 per cent between October and December over the same quarter in 2020, less than 4.03 per cent 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 per cent and -3.62 per cent in the second and third quarters of that year.

Compared to the third quarter of 2021, the last quarter grew 9.63 per cent.

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 per cent. The oil sector which contributed 7.24 per cent to the economy, declined by 8.06 per cent.

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