President Muhammadu Buhari said he welcomes Q2 2021 report by the Nigerian Bureau of Statistics (NBS), showing a third consecutive quarter of positive growth of Nigeria’s economy, as well as the highest quarterly growth in Gross Domestic Product (GDP) since 2014.
The president, through a statement by Femi Adesina, his Special Adviser on Media and Publicity, commended managers of the economy for hard work and commitment, urging them to keep at it till the positive development “touches the lives and pockets of the average Nigerian.”
It would be recalled that Nigeria’s GDP grew by 5.01% (year-on-year) in real terms in the second quarter of 2021, the NBS said on Thursday.
Daily Independent reports that the 5.01% marks three consecutive quarters of growth following the negative growth rates recorded in the second and third quarters of 2020.
The NBS said the Q2 2021 growth rate was higher than the -6.10% growth rate recorded in Q2 2020 and the 0.51% recorded in Q1 2021 year-on-year.
It noted that this is an indication of the return of business and economic activity near levels seen prior to the nationwide implementation of COVID-19 related restrictions.
The report stated that the steady recovery observed since the end of 2020, with the gradual return of commercial activity as well as local and international travel, accounted for the significant increase in growth performance relative to the second quarter of 2020 when nationwide restrictions took effect.
Year-to-date, real GDP grew 2.70% in 2021 compared to -2.18% for the first half of 2020.
“Nevertheless, quarter on quarter, real GDP grew at -0.79% in Q2 2021 compared to Q1 2021, reflecting slightly slower economic activity than the preceding quarter due largely to seasonality.
“In the quarter under review, aggregate GDP stood at N39.12 trillion in nominal terms, higher than the second quarter of 2020 with aggregate GDP of N34.02 trillion, indicating a year on year nominal growth rate of 14.99%.
“The nominal GDP growth rate in Q2 2021 was higher than -2.80% growth recorded in the second quarter of 2020 when economic activities slowed sharply at the outset of the pandemic.
“The Q2 2021 nominal growth rate was also higher than 12.25% growth recorded in Q1 2021”, NBS said.
According to NBS, in the second quarter of 2021, average daily oil production stood at 1.61 million barrels per day (mbpd), which is -0.19mbpd lower than the average daily production of 1.81mbpd recorded in the same quarter of
2020 and -0.10mbpd lower than the 1.72mbpd recorded in the first quarter of 2021.
“Real growth of the oil sector was –12.65% (year-on-year) in Q2 2021 indicating a decrease of –6.02% points relative to the growth rate recorded in the corresponding quarter of 2020”, it noted.
It said the non-oil sector grew by 6.74% in real terms during the reference quarter (Q2 2021). The Q2 2021 growth rate was higher by 12.80% points compared to the rate recorded in the same quarter of 2020 and 5.95% points higher than the first quarter of 2021.
During the quarter, the sector was driven mainly by growth in Trade, Information and Communication (Telecommunication), Transportation (Road Transport),
Electricity, Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco), reflecting the easing of movement, business and economic activity across the country relative to the same period a year earlier.
In real terms, the non-oil sector contributed 92.58% to the nation’s GDP in the second quarter of 2021, higher from shares recorded in the second quarter of 2020 which was 91.07% and the first quarter of 2021 recorded as 90.75%.
Meanwhile, President Buhari has assured that recent reforms and efforts like the conclusion of the marginal fields bid round, the renewed focus on gas development (including the NLNG Train 7 project, and various pipeline construction projects) as well as the passage and assent to the Petroleum Industry Bill (PIB) are certain to attract new investment to the oil and gas sector, and create conditions for more robust levels of growth in the future.
Meanwhile, President Muhammadu Buhari has declared a net profit after tax of N287 billion for Nigerian National Petroleum Corporation (NNPC) in the year 2020.
The declaration, according to a statement by Femi Adesina on Thursday, noted that it was in fulfillment of an earlier pledge by the Federal Government to publicly announce the financial position of NNPC.
The announcement marks the first time such declaration will be made in the 44-year history of the establishment.
According to the president, who doubles as Minister for Petroleum Resources, “I am pleased to announce the declaration of profit after tax of N287 billion in year 2020 by the Nigerian National Petroleum Corporation.
“This is sequel to the completion of the statutory annual audit exercise for year 2020.
“The NNPC losses were reduced from N803 billion in year 2018 to N1.7 billion in year 2019 and the eventual declaration of net profit in year 2020 for the first time in its 44-year history.
“This development is consistent with this administration’s commitment to ensuring prudent management of resources and maximisation of value for the Nigerian people from their natural resources.
“I have further directed the Nigerian National Petroleum Corporation to timely publish the audited financial statements in line with the requirements of the law and as follow up to our commitment to ensuring transparency and accountability by public institutions.
“I congratulate the board, management and staff of the corporation and look forward to greater value creation for the Nigerian people”.