Inflation and Oil Theft Reduce Economic Activities in Nigeria as Q2 2022 GDP Falls to 3.54%

Rising inflation rate in Nigeria and a sharp decline in crude oil production caused by pipeline vandalism and oil theft resulted in a decline in the growth rate of Gross Domestic Product (GDP) to 3.54% in the second quarter (Q2 2022) of this year.

This is contained in the National Bureau of Statistics (NBS) second quarter GDP report released Friday in Abuja, which indicates that the Nigerian economy grew by 3.54% in the second quarter, slower than previous 5.01% recorded in the same quarter. last year period.

According to the SNB report, GDP of 3.54% in the second quarter of 2022 represents a decrease from the 5.01% recorded in the second quarter of 2021 despite the negative impact of the COVID-19 pandemic on the Nigerian economy.

In its GDP outlook for the second quarter of 2022, the BES said that “Nigeria's gross domestic product (GDP) grew by 3.54% (year-on-year) in real terms in the second quarter of 2022.< /p>

"This growth rate declined from 5.01% in the second quarter of 2021, when rapid growth was recorded following the devastation the COVID-19 pandemic wreaked on the economy in the second quarter of 2020.

"In addition, the recent price increase had a negative impact on the performance of the second quarter of 2022.

“Q2 2022 growth rate decreased by 1.47% compared to the 5.01% growth rate recorded in Q2 2021 and increased by 0.44% compared to 3.11% in Q1 2022.

“However, on a quarterly basis, real GDP increased by -0.37% in the second quarter of 2022, reflecting weaker economic activity in the second quarter of 2022 than in the previous quarter.

“During the quarter under review, aggregate GDP stood at 45,004,520.89 million naira in nominal terms. N123,713.32 million, indicating a nominal year-on-year growth rate of 15.03%.

“The nominal GDP growth rate in Q2 2022 was higher than the 14.99% growth recorded in the second quarter of 2021 and higher than the 13.25% growth recorded in the previous quarter. Nigeria's economy has been categorized broadly into oil and non-oil sectors.

A further breakdown of the SNB report shows that the urban inflation rate increased by 2.08% to 20.09% in July 2022, from 18.01% recorded in July 2021, while the rate rural inflation reached 19.22% against 16.75% recorded. in the corresponding period under review.

The inflation rate in Nigeria stood at 19.64% in July this year, the highest rate in 17 years. The last time inflation in the country exceeded 19.64% was in September 2005, when it peaked at 24.32%.

Increases in the food and basic index have caused the rate of inflation to rise.

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