Transport, Finance and Telecommunications Lead Fastest Growing Sectors in Nigeria for Q3 2021
The rail transport, metal minerals, aviation and financial services sectors topped the list of the country’s fastest growing sectors for the third quarter of 2021. According to GDP figures presented by the National Office statistics (NBS).
The rail transport sector grew 59.93% year-over-year in real terms in the third quarter of 2021, representing the fastest growing sector during the review period, closely followed by minerals metals, which are a component of the mining and quarrying sector with a growth of 54.92%. rate.
Recall that Nairametrics reported on Thursday that Nigeria’s GDP for the third quarter of 2021 grew 4.03% year-on-year in real terms, consolidating the 5.01% increase recorded in the previous quarter.
Growth, which was largely driven by the non-oil sector, contributed 92.51% to aggregate GDP for the period, leaving the remaining 7.49% to the oil sector. Growth in the non-oil sector has been driven by growth in the business sector, ICT, finance, manufacturing, agriculture and transportation, according to the report.
Below are the fastest growing sectors / businesses during the review period:
Rail and pipeline transport – 59.93%
The rail transport and pipeline sector of the economy grew 59.93% year-on-year in real terms in the third quarter of 2021, following similar growth of 53.28% recorded in the previous quarter. The railway sector, which has seen an increased level of activity in recent times, with the new Lagos-Ibadan railway line.
The increased adoption of rail services across the country was clearly reflected in the GDP figures, as the sector experienced recurring contractions in the four quarters leading up to the second quarter of 2021.
At the same time, the vandalism of the Abuja-Kaduna railway lines in October by suspected bandits could pose a threat to the growth in the area.
Metallic ores – 54.92%
The GDP of the metal ores activity grew by 54.92% during the period under review, compared to a growth of 21.12% recorded in the previous period and a contraction of 6.22% recorded during the period under review. of the corresponding period of 2020.
The sector, which is a sub-activity of the mining and quarrying sector, is the only sub-sector of the group to record growth in the third quarter of the year. In particular, the production of crude and natural gas fell 10.73% year on year in real terms. This is no surprise, given the recorded decline in daily crude oil production in the country.
Coal mining also registered a 4.2% decline in GDP, while quarries and other minerals declined 4.2% during the review period.
Air transport – 33.31%
The aviation sector grew 33.31% in the third quarter of 2021, largely thanks to increased travel activity in the country, after the lockdown due to covid. Due to the reopening of most of the world’s economies, pent-up travel obligations have now been fulfilled, resulting in a significant expansion of the industry.
Compared to the previous quarter, the growth rate increased by 28.33% points against 4.98%. The sector experienced multiple declines between Q2 2020 and Q1 2021.
Financial institutions – 25.5%
The financial sector of the economy grew by 25.5% year on year in real terms in the third quarter of 2021, compared to a contraction of 4.54% recorded in the previous quarter and a growth of 6.8% recorded in the third quarter of 2020 .
The sector, which includes banks, investment houses and other financial services besides insurance, was able to recover from the recession of the previous quarter. Similarly, the broader sector, namely the financial and insurance sector, grew 23.23% in real terms compared to a 2.48% decline recorded in the previous quarter.
Road transport – 21.11%
The road transport sector is also among the elite list of fastest growing sectors during the review period, alongside other forms of transport. This is not a surprise, as travel has been reorganized across the country, with local travel also increasing significantly.
Notably, the sector grew by 21.11% year over year in real terms. However, this figure is lower than the 92.38% increase recorded in the previous quarter.
- Water transport – 16.3%
- Electricity – 14.36%
- Water supply – 12.97%
- Commerce – 11.9%
- Telecommunications – 10.87%
What would you like to know
In the quarter under review, aggregate GDP stood at N45.11 trillion in nominal terms. This performance is superior to the third quarter of 2020 which recorded an aggregate GDP of 39.09 trillion naira, indicating a nominal growth rate of 15.41% year-on-year.
In terms of real GDP, the aggregate stood at N18.5 trillion in the third quarter of 2021.