Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 35)

In the second quarter of 2021, the country’s Gross Domestic Product (GDP) grew by 5.01 percent (year-on-year) in real terms, marking three consecutive quarters of growth after the negative growth rates recorded in the second and third quarters of 2020.1 The rise in real GDP saw the oil sector contributing 7.42 percent while 92.58 percent was contributed by the non-oil sector. The steady recovery of the Nigerian economy since the end of 2020 is attributed to the increase in economic activities relative to pre-COVID-19 levels, and the easing of travel restrictions both locally and internationally. However, further insights show that real GDP grew at -0.79% in Q2 2021 compared to Q1 2021, reflecting slightly slower economic activities than the preceding quarter due largely to seasonality. It is important that the government adopts a multi-pronged solution to consolidate the recovery of the economy. This should include improving the ease of doing business, implementing expansionary fiscal policies to improve economic infrastructure, as well as improving security to boost aggregate supply.

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