BREAKING: Nigeria’s GDP Records 5% Growth for 2nd Quarter, the Highest since 2014

BREAKING: Nigeria’s GDP Records 5% Growth for 2nd Quarter, the Highest since 2014

  • The National Bureau of Statistics on Thursday, August 26, released the GDP report for the second quarter of 2021
  • For the first time since 2014, the GDP grew by 5.01% (year-on-year) as the economy bounced back from the effects of the COVID-19 pandemic
  • The latest GDP report by the NBS also indicates that the real GDP (quarter-on-quarter) grew at -0.79% in Q2 2021 compared to Q1 2021

FCT, Abuja - Nigeria’s Gross Domestic Product (GDP) grew by 5.01% (year-on-year) in real terms in the second quarter of 2021, according to the National Bureau of Statistics (NBS).

The NBS disclosed this in the latest report on the nation’s GDP for the second quarter of 2021 released on Thursday, August 21.

Economy: Nigeria’s GDP Records 5% Growth for 2nd Quarter
Edith Obatuga (R) buys goods at the Illaje market, in Bariga, Lagos, on June 29, 2021. Photo credit: BENSON IBEABUCHI/AFP
Source: Getty Images

The GDP growth, according to The Cable, is the highest since the fourth quarter of 2014.

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The statistics agency explained that the increase in the GDP index marked three consecutive quarters of growth following the negative growth rates recorded in the second and third quarters of 2020.

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The NBS report read partly:

“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, indicating the return of business and economic activity near levels seen prior to the nationwide implementation of COVID-19 related restrictions.
“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.”

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Real GDP quarter-on-quarter grew at -0.79%

Meanwhile, the NBS' report shows that the real GDP (quarter-on-quarter) grew at -0.79% in Q2 2021 compared to Q1 2021.

This, gathers, indicates slightly slower economic activity than the preceding quarter due largely to seasonality.

Also in the quarter under review, the NBS revealed that the aggregate GDP stood at N39,123,713.32 million in nominal terms – higher than the second quarter of 2020 with aggregate GDP of N34,023,197.60 million, indicating a year-on-year nominal growth rate of 14.99%.

The NBS added that the nominal GDP growth rate in Q2 2021 was higher than the -2.80% growth recorded in the second quarter of 2020 when economic activities slowed sharply at the outset of the pandemic.

The agency said:

“The Q2 2021 nominal growth rate was also higher than 12.25% growth recorded in Q1 2021."

IMF wants FG to increase tax paid by Nigerian companies

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In another report, Nigeria and other African countries have been told by the International Monetary Fund (IMF) to increase taxes on the private sector as high public debts affect government intervention.

The IMF said the private sector will play a key role in the recovery of Africa's economy which was affected by the COVID-19 pandemic in 2020 and is still experiencing an aftermath shock.

With high public debts blocking international aid, the international financial institution said Nigeria and its counterparts will have to squeeze the funds from companies.


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