In the three months to December, Nigeria reported GDP growth of 3.52% year-on-year against expectations of 2.5%
Nigeria’s economy grew faster than expected in the fourth quarter thanks to growth in the non-oil sector. Africa’s largest economy grew 3.52 percent year-on-year in the three months to December, compared with 2.25 percent in the third quarter, the National Bureau of Statistics said in a report. The average estimate of four economists in a Bloomberg survey was for growth of 2.5%.
The data, a rare ray of light against a backdrop of high inflation and widespread unemployment, was released days before Nigerians go to the polls in a contested presidential election, while gas and cash shortages are seen across the country. All the leading candidates have promised to “fix the economy”, which is in financial crisis.
The expansion in GDP during the period was mainly driven by the services sector, which grew by 5.69 percent and contributed more than half of gross economic output, the statistics agency said, adding that floods slowed growth in agriculture to 2.05 % compared to 3.6% in the previous third quarter.
The non-oil economy expanded 4.4 percent in the quarter from a year earlier, driven mainly by growth in telecommunications, trade and agriculture, while the oil sector shrank 13.4 percent as output fell to an average 1, 34 million barrels per day compared to 1.5 million barrels per day a year earlier.
Nigeria is trying to increase production to reach its full OPEC+ quota, but faces continuous supply disruptions. While there has been an improvement in some crude oil production, it will not be enough for the country to reach its OPEC+ target this year or in 2024, Facts Global Energy said in a research note on Wednesday.
Last month, the Central Bank of Nigeria surprisingly raised its key interest rate by 100 basis points, the highest level in 17 years, citing continued inflation, which rose to 21.8% in January, the highest level since 2005. . over here.
