Nigeria recorded a growth rate of 3.5 percent y/y in the second quarter from 3.1 percent y/y in 1Q22, surpassing consensus expectations of a slowdown to 2.9 percent.
The 2Q22 GDP reading marked the seventh consecutive quarterly expansion and was underpinned by growth in the non-oil sector. Meanwhile, the oil sector detracted from the overall GDP reading as it shrunk by 12 percent. Oil production declined to 1.43 million barrels per day in 2Q22, compared with 1.49 million barrels in the previous three-month period.
Nigeria has been unable to meet its OPEC+ quota this year, partly because of crude theft. Compared to the corresponding period in 2021, GDP growth, however, slowed from 5.1 percent y/y, suggesting that the economy has to some degree, been weighed down by the high inflationary trend.