Nairametrics
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
  • Economy
    • Macro-Economic News
    • Get Data
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
  • Economy
    • Macro-Economic News
    • Get Data
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home General News Politics

Services, manufacturing, oil & gas sector to drive 4% real GDP growth in 2022 – Agusto & Co

GDP growth of 3-4% in 2022 to be driven largely by the services, manufacturing

Zainab Iwayemi by Zainab Iwayemi
January 25, 2022
in Politics
Services, manufacturing, oil & gas sector to drive 4% real GDP growth in 2022 – Agusto & Co
Share on FacebookShare on TwitterShare on Linkedin

Nigeria’s real GDP is expected to grow by 3 to 4% in 2022 driven largely by the services, manufacturing and oil and gas sector. This is according to a report by Agusto and Co in its recent report on the Economic Outlook for 2022.

The growth is expected to be fueled by improved performance as businesses and households in Nigeria fare slightly better than they did in 2021 and as the world recovers from the Covid-19 pandemic.

However, the report added that returns delivered by key businesses will still be below the expected return (cost of equity) estimated at about 27% for Nigeria while real wages will continue to drop and unemployment will keep rising.

Highlight of the report

  • We project real GDP growth of 3-4% in 2022 driven largely by the services, manufacturing deliver ROE that is above average inflation of about 15% in 2022. Financial services businesses will struggle to meet this hurdle rate largely due to negative regulations and a higher effective tax rate.
  • In 2022, businesses will need to grow their nominal sales by about 15% to keep pace with inflation. This will be difficult for most as the real wages of consumers are unlikely to keep pace with inflation.
  • After-tax return on equity (ROE) across most industries will remain weak and below the cost of equity estimate, at around 27% for 2022. However, key businesses in the real estate sector should deliver ROE that is above average inflation of about 15% in 2022 as financial services businesses will struggle to meet this hurdle rate largely due to negative regulations and a higher effective tax rate.
  • Population growth of 2.5% will eat the bulk of the real GDP growth of 3-4% projected, this means that real GDP per person will still be below the N383,000 for 2015.
  • Real wages of employees who work for the key businesses in the real sector will continue to fall.
  • Unemployment will continue to rise as school leavers join an economy that is weak at creating jobs.

What you should know

Nairametrics had earlier reported that Nigeria’s Gross Domestic Product (GDP) grew by 4.03% (year-on-year) in real terms in the third quarter of 2021, showing a sustained growth over the last four quarters since the recession witnessed in 2020.

According to the report, Nigeria’s real GDP grew by 4.03% in Q3 2021, representing a slower growth compared to 5.01% recorded in the previous quarter. On a quarter-on-quarter basis, real GDP grew by 11.07% in Q3 2021 compared to Q2 2021, reflecting a higher economic activity than the preceding quarter.

Related

Tags: GDP growthManufacturing sectorOil and Gas Sector

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Access Bank
Bankers Committee
Flowmono

Bfpeer
Mega Millions
FCMB
Ikeja Electrics
Zenith CEX
Kwakol Markets
First bank





    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • UBA upgrades Chatbot features, as Leo launches service on Google Business Chat, Instagram
    • Terra co-founder, Do Kwon, summoned by South Korean parliament over Terra debacle
    • JAMB refutes error in its scoring system, reacts to plans to organize another UTME

    Follow us on social media:

    Recent News

    UBA upgrades Chatbot features, as Leo launches service on Google Business Chat, Instagram

    UBA upgrades Chatbot features, as Leo launches service on Google Business Chat, Instagram

    May 17, 2022
    Terra founder, Do Kwon, breaks silence and offers proposal to restore UST peg

    Terra co-founder, Do Kwon, summoned by South Korean parliament over Terra debacle

    May 17, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Ranking & Reviews
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
    • Economy
      • Macro-Economic News
      • Get Data
    • General News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com