Rail transportation, metal ores, aviation, and financial services sectors led the list of fastest-growing sectors in the country for the third quarter of 2021. This is according to GDP numbers presented by the National Bureau of Statistics (NBS).
The rail transportation sector grew by 59.93% year-on-year in real terms in Q3 2021, representing the fastest growing sector in the review period, closely followed by metal ores, which is a component of the mining and quarrying sector with 54.92% growth rate.
Recall, that Nairametrics reported on Thursday that Nigeria’s GDP for the third quarter of 2021 expanded by 4.03% year-on-year in real terms, consolidating on the 5.01% increase recorded in the previous quarter.
The growth, which was largely driven by the non-oil sector, having contributed 92.51% to the aggregate GDP for the period, leaving the remaining 7.49% to the oil sector. According to the report, the growth recorded in the non-oil sector was driven by growth in the trade sector, ICT, financial, manufacturing, agriculture, and transportation.
Below were the fastest growing sectors/activities in the review period:
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Rail transport & pipeline – 59.93%
The rail transport and pipeline sector of the economy grew by a massive 59.93% year-on-year in real terms in the third quarter of 2021, following a similar 53.28% growth recorded in the previous quarter. The rail sector, which has witnessed a level of increased activities in recent times, with the newly functioning Lagos to Ibadan rail line.
The increased adoption of rail services across the country has clearly been reflected in the GDP numbers, considering that the sector had witnessed recurrent contractions in four quarters preceding Q2 2021.
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Meanwhile, the vandalization of the Abuja-Kaduna rail tracks in October by suspected bandits could pose a threat to the growth recorded in the sector.
Metal ores – 54.92%
The GDP of metal ore activity grew by 54.92% in the review period compared to 21.12% growth recorded in the previous period and a 6.22% contraction recorded in the corresponding period of 2020.
The sector, which is a sub-activity of the mining and quarrying sector is the only sub-sector in the group to record growth in the third quarter of the year. Notably, crude production and natural gas declined by 10.73% year-on-year in real terms. This is no surprise, given the decline recorded in the daily production of crude oil in the country.
Coal mining also recorded a decline of 4.2% in its GDP, while quarrying and other minerals dipped by 4.2% in the review period.
Air transport – 33.31%
The aviation sector grew by 33.31% in Q3 2021, largely driven by increased traveling activities in the country, post covid lockdown. Due to the reopening of most economies of the world, pent-up traveling obligations have now been carried out, which has resulted in a significant expansion in the sector.
Compared to the previous quarter, the growth rate increased by 28.33% points from 4.98%. The sector witnessed 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 Q3 2021, compared to a contraction of 4.54% recorded in the previous quarter and a 6.8% growth recorded in Q3 2020.
The sector, which captures banks, investment houses and other financial services apart from insurance was able to recover from the downturn in the preceding quarter. In the same, the broader sector, which is the financial and insurance sector grew by 23.23% in real terms from a 2.48% decline recorded in the previous quarter.
Road transport – 21.11%
The road transportation sector also makes part of the elite list of fastest-growing sectors in the review period alongside other forms of transportation. This is no surprise, as movement has been revamped across the country, with local travelling also growing significantly.
Notably, the sector recorded a growth of 21.11% year-on-year increase in real terms. This is however, lower than the 92.38% increase recorded in the previous quarter.
Water transport – 16.3%
Electricity – 14.36%
Water supply – 12.97%
Trade – 11.9%
Telecommunications – 10.87%
What you need to know
In the quarter under review, aggregate GDP stood at N45.11 trillion in nominal terms. This performance is higher when compared to the third quarter of 2020 which recorded aggregate GDP of N39.09 trillion, indicating a year-on-year nominal growth rate of 15.41%.
In terms of real GDP, the aggregate stood at N18.54 trillion in Q3 2021.