Key highlights
- Nigeria’s economy has shown significant growth, with several sectors recording remarkable progress in recent years.
- The country’s overall GDP growth rate has slowed down in 2022, with a growth rate of 3.1% in 2022 compared to 3.4% in 2021.
- The top three fastest-growing sectors are Quarrying and Other Minerals, Air Transport, and Financial Institutions.
- Other sectors such as oil refining, crude petroleum and natural gas contracted in 2022, but several sectors continue to show significant growth potential.
Nigeria’s economy has experienced significant growth in recent years, with several sectors showing remarkable progress.
While several sectors in Nigeria’s economy have experienced significant growth, the country’s overall GDP growth rate has slowed down in 2022.
According to the National Bureau of Statistics, Nigeria’s GDP grew by 3.1% in 2022, compared to 3.4% in 2021. This slowdown in growth can be attributed to various factors, including the high inflation rate, the ripple effect of the COVID-19 pandemic, and ongoing security challenges in the country.
However, it is worth noting that Nigeria’s economy has made a remarkable recovery since 2020 when the country recorded a GDP growth rate of -1.92% due to the impact of the COVID-19 pandemic and the global oil price crash.
Despite the challenges facing Nigeria’s economy, the country’s GDP growth rate remains positive, and several sectors continue to show significant growth potential.
According to the country’s Gross Domestic Product (GDP) data, here are the top 10 fastest-growing sectors in Nigeria, based on real growth rate in 2022:
- Quarrying and Other Minerals – 27.52%
- Air Transport – 26.23%
- Financial Institutions – 17.24%
- Metal Ores – 15.98%
- Road Transport – 15.14%
- Water Transport – 14.11%
- Water Supply, Sewerage, Waste Management and Remediation – 13.62%
- Telecommunications – 10.72%
- Chemical and Pharmaceutical Products – 9.44%
- Insurance – 8.68%
Quarrying and Other Minerals, the sector with the highest growth rate, recorded a remarkable 27.53% growth rate in 2022 in contrast to 18.37% printed in the prior year. This sector comprises various activities, including the quarrying of stone, sand, and clay, as well as the mining of minerals such as tin, gold, and coal. This sector is expected to continue to grow in the coming years, as Nigeria is rich in mineral resources.
Air Transport, the second fastest growing sector, recorded a growth rate of 26.23% in 2022 compared to 19.7% recorded in the previous year, largely attributed to increased air travel demand in the country, amidst insecurity fears as well as the expansion of airline services.
This sector includes activities such as scheduled and chartered air transport services, as well as air cargo transport services.
Financial Institutions, the third fastest growing sector, recorded a growth rate of 17.24% in 2022, from 10.53% recorded in the previous year. This sector includes activities such as banking, insurance, and other financial services. The growth of this sector is driven by increased economic activity and the growing demand for financial services. This is despite the hawkish stance of the apex bank, which was aimed at mopping excess liquidity in the economy.
Other sectors that have recorded significant growth include Metal Ores (15.98%), Road Transport (15.14%), Water Transport (14.11%), water supply and waste management (13.62%), Telecommunications (10.72%), Chemical and Pharmaceutical Products (9.44%), and Insurance (8.68%). Each of these sectors plays a vital role in Nigeria’s economy and is expected to continue to grow in the coming years.
However, some sectors have experienced contractions in the review year as oil refining recorded a 41.93% decline from the 47.94% contraction recorded in the previous year. Crude petroleum also dipped by 19.22% from a negative growth rate of 8.3% recorded in 2021.
In conclusion, Nigeria’s economy has seen remarkable growth in several sectors, with Quarrying and Other Minerals, Air Transport, and Financial Institutions being the top three fastest-growing sectors. These sectors, along with other sectors experiencing significant growth rates, are crucial to Nigeria’s economy and are expected to continue to grow in the coming years.
