Earlier this week, the National Bureau of Statistics (NBS) released Nigeria’s Gross Domestic Product (GDP) report for 2022. The report showed that the economy grew by 3.1% yearonyear in real terms, a slow growth compared to 3.4% recorded in the previous year.
According to the report, the nonoil sector accounted for 94.33% of the aggregate GDP while the oil sector represented 5.64% of the economy. In aggregate terms, the real GDP stood at N74.64 trillion in the review year, in contrast to the N72.39 trillion recorded in 2021.
The Nigerian economy expanded by 3.1% in the year under review, despite inflationary pressure and aggressive monetary policy hikes. Recall that Nigeria’s annual inflation rate averaged at 18.85% in 2022 from 16.95% recorded in the previous year, the highest in 21 years, leading to multiple rate increases by the apex bank.
Further analysis of the data showed that the growth was largely driven by the non
oil sector, with increased activities in the financial, transportation, waste
management, ICT, trade, and construction sector, representing the fastestgrowing
sectors in the economy for 2022. As usual, Nairametrics present the fastestgrowing sectors in the Nigerian economy in 2022, with reference to their performance in the preceding year.
5th: Trade – 5.13%
The trade sector grew by 5.13% year over year in 2022, representing a slow
growth when compared to 8.62% recorded in the previous year. However, the
sector maintained the fifth fastest sector, the same as recorded in the previous
year. Trading activities in the country have improved in the last two years,
overturning the contractions recorded between 2016 and 2020. The signing of
the African Continental Free Tade Agreement (AfCFTA) in July 2019, has also
presented an opportunity for growth in Nigeria’s trade with other African economies. The resumption from the covid19 pandemic and lockdown has also supported the growth level recorded in the Nigerian trade sector.
4th: Information and communication – 9.76%
The information and communication sector was the fourth fastestgrowing sector in the year under review. The sector grew by 9.76% in 2022, an improvement compared to the 6.55% recorded in 2021.
The sector moved from the 6th position recorded last year to the fourth
position in the review year. The ICT sector comprises four subsectors;
telecommunication, publishing, motion pictures, and broadcasting.
The telecommunications and information services subsector which includes
some of the largest companies in Nigeria, grew by 10.72% year over year, an
improvement from 7.28% recorded in the previous year.
The publishing and motion pictures subsectors grew by 5.59% and 5.82%
respectively, while the broadcasting subsector grew by 5.37%.
3rd: Water and waste management – 13.62%
The waste management sector, which involves water supply, sewage, waste
management and sewage, grew by 13.6% in 2022, representing the third fastest
growing sector in the year.
Compared to the previous year, the sector slowed down in terms of growth
rate from 18.3%.
The water and waste management sector lost its second position from theprevious year to the transportation and storage sector.
2nd: Transportation and Storage – 15.2%
With a growth rate of 15.2% in 2022, the transportation and storage sector of the Nigerian economy stood as the second fastest sector for the year. Meanwhile, the growth slowed relative to the previous year, where it printed annual real growth of 16.3%. The transportation and storage sector comprises of road, rail, water, air transport, and other transport related services. Air transport recorded the highest growth rate in the review year at 26.23%, followed by road transport with 15.14%. Likewise, the transport services subsector recorded a growth rate of 5.55% in 2022. The water transport subsector grew by 14.11% year on year in the review year.
1st: Financial and Insurance – 16.36%
The financial and insurance sector was the fastest growing sector in the Nigerian economy in 2022 with real growth of 16.4%, an increase compared to 10.1% recorded in the previous year. The sector improved from fourth position last year to stand top of the list in the review year. The broad sector comprises financial institutions and insurance subsectors. The financial institution’s subsector recorded a positive growth rate of 17.24% in the year under review, compared to the 10.53% reported in the previous year. Likewise, the insurance sector recorded an 8.68% year on year growth, outpacing the 6.24% captured in the previous year.
6th: Construction – 4.54%
7th: Art, entertainment, and recreation – 4.29%
8th: Accommodation and food services – 4.22%
9th: Human health and social service – 4.20%
10th: Real estate – 3.95%