President Buhari has rolled the drum to celebrate the three positive consecutive growth of the Nigeria’s economy, especially the highest quarterly growth in GDP since 2014.
Reacting to the report of the 2021 quarter performance by the Nigerian Bureau of Statistics (NBS), in a statement today, August 26 by his spokesman, Femi Adesina, the President
commended managers of the economy for hard work and commitment, asking them to keep at it till the positive development “touches the lives and pockets of the average Nigerian.”
The President took note of the decline in real growth in the oil sector in Q2 2021, compared to a year ago, whereas oil production levels were at 1.62 million barrels per day, compared to 1.67 million barrels per day in Q2 2020.
He said that the lower production output as well as the volatility in oil prices since the beginning of the COVID-19 pandemic is responsible for the decline in performance of the oil sector.
President Buhari 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), would attract new investment to the oil and gas sector, and create conditions for more robust levels of growth in the future.
Looking to the future, the President assured Nigerians that there is much to be optimistic about, adding that the investments in agriculture and infrastructure will continue, as will on-going efforts to achieve a significant improvement in the security situation across the country.
“There is no doubt that a more secure environment – which the security agencies are working hard to achieve – will spur and energize the shoots of economic progress being seen and felt in the country.”
According to the NBS report, the Gross Domestic Product (GDP) grew by 5.01% in Q2 2021 following 0.51% growth in Q1 2021. This growth, which continues the progress of the preceding two quarters, is a continuing trend reflecting Nigeria’s economic rebound following the COVID-19-induced contractions seen in Q1 and Q2 2020.
The non-oil sector is a significant contributor to the economic performance in Q2 2021 with growth of 6.74% in real terms, the fastest growth in the sector since the third quarter of 2014. The contribution of the non-oil sector to GDP increased from 91.07% in Q2 2020 to 92.58% in Q2 2021.
The main drivers of the Q2 2021 economic growth include Trade, Information and Communication (mainly Telecommunications), Transportation, Electricity, Agriculture (Crop Production) and Manufacturing.
The service sector, specifically, recorded its strongest performance in more than a decade, growing at 9.27%.
These main growth drivers of this second quarter performance are reflective of the gains from easing restriction of movement locally and internationally, and the improvement in the business and economic environment compared to the same period in 2020.
Femi Adesina emphasized that the various policies of the Buhari administration, aimed at boosting agricultural production, improving the business environment, and investing massively in infrastructure, are beginning to yield fruit.
‘Equally gratifying is the complementary news of the steady decline in the rate of inflation, over the last few months.
“The positive effects of the Economic Sustainability Plan (ESP), which helped fast-track the country’s exit from the COVID-induced recession of 2020, continue to be evident, as some of the sectors driving the Q2 2021 growth have benefited or are benefiting from government-led interventions.
“The successful roll-out of vaccines and COVID-19 protocols has also helped to reduce pressures on the healthcare system and the need for a lockdown.”