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Top 5 fastest-growing economic-sectors in Nigeria in 2022

Lagos-Nigeria
  • The non-oil sector in Nigeria continues to contribute to the growth of the country’s GDP.
  • Nominal growth for Q3 of 2022 is higher than the recorded growth for the same period in 2021. 
  • This list is courtesy of the National Bureau of Statistics. 

In 2021, Nigeria was Africa’s richest market, thanks in no small measure to its oil sector. However, the oil sector alone was not solely responsible for the country’s immense revenue, as other key sectors also made significant contributions to the growth of the Nigerian GDP.

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This trend of economic diversification remains preeminent this year. Numerous industries have added to the wealth of Nigeria, making it retain its position as one of Africa’s richest markets.

The Gross Domestic Product (GDP) for Q3 2022 report released by the National Bureau of Statistics (NBS) reiterates the impact of the country’s diversified economic portfolio, albeit the Q3 figures for 2022 are significantly lower than the Q3 numbers for 2021.

According to the report “Nigeria’s Gross Domestic Product (GDP) grew by 2.25% (year-on-year) in real terms in the third quarter of 2022. This growth rate declined from 4.03% in the third quarter of 2021. The reduction in growth is attributable to the base effects of the recession and the challenging economic conditions that have impeded productive activities.”

The report also notes a discrepancy in the figures, revealing that Q3 for 2022 recorded a higher level of growth than Q3 of 2021 when micro-economic factors are considered.

“However, quarter-on-quarter, real GDP grew at 9.68% in Q3 2022, reflecting a higher economic activity in Q3 2022 than the preceding quarter. In the quarter under review, aggregate GDP stood at N52,255,809.62 million in nominal terms. This performance is higher when compared to the third quarter of 2021 which recorded aggregate GDP of N45,113,448.06 million, indicating a year-on-year nominal growth rate of 15.83%.”

The Nigerian oil sector still contributes a little over 90% of the country’s entire GDP, but this is backdropped against an estimated $450 billion annual GDP for 2022, meaning that the little under 10% contribution of every other sector combined still constitutes a sizable amount to the economy at large.

As stated earlier the aggregate GDP in Q3 2022 stands at N52,255,809.62 million in nominal terms, showing that there is potential for other sectors to someday rival the oil sector should massive developments in these sectors be implemented.

Below are 5 of the strongest non-oil sector that generated N52,255,809.62 million in revenue and the fastest-growing sectors in the Nigerian economy for Q3 2022.

Transport and Storage: This is the country's fastest-growing sector, coming in at 41.59% in Q3 2022.

Finance and Insurance: Second on the list is the finance and insurance sector which recorded a 12.7% year-on-year in real terms in the third quarter of the year.

Information and Communication: This industry continues to thrive in Nigeria owing to the ever-increasing internet penetration in the country. This sector grew by 10.53% year-on-year in Q3 2022.

Art, entertainment, and recreation: The Nigerian creative industry has become renowned globally, standing as the continent’s most prominent. It recorded a growth of 7.79% in Q3 of 2022.

Accommodation and food services: No other sector is more directly tied to the country's massive population, yet this sector only recorded a 6.77% growth in Q3 of 2022.

This is a Business Insider Article, for more articles like this, visit africa.businessinsider.com

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