By Favour Nnabugwu
The National Bureau of Statistics, NBS, said household consumption expenditure rose year-on-year (YoY) by 1,414 percent points to 25.6 per cent in 2021 from -1.69 per cent in 2020.
However, the bureau said that government expenditure fell YoY by 80 percentage points to -34.03 per cent in 2021 from 61.5 per cent in 2020.
According to its Nigerian Gross Domestic Product (GDP) Report: Income and Expenditure approach for third and fourth quarter of 2021 (Q3,Q4’21) , the fall in Government expenditure was due to the efforts of government policies on COVID-19 during the period.
The report stated:”Overall, in 2021, real household final consumption expenditure inclined by 25.6 per cent from -1.69 per cent recorded in 2020. The observed trend in 2020 indicates that real household consumption expenditure declined in Q1 and Q2 accounting for negative growth rates informed by the COVID 19 pandemic.
“However, positive growth rates were recorded in Q3 and Q4 2020 as well as the Q4 ’21.
” In Q3 and Q4 2021, real general government expenditure grew by -39.5 per cent and -16.7 per cent respectively. “Growth rate in Q3’21 was lower by -138.6 per cent points when compared to the corresponding quarter of 2020. Similarly, Q4 2021 decreased by -28.8 per cent points compared to Q4′ 20.
“With annual growth rate standing at -34.03 per cent, the 2021 performance indicated lower growth compared to the preceding year of 2020 at 61.5 per cent due to the efforts of government policies on COVID-19.”
NBS also said that the nation’s annual GDP at basic prices rose by 77 percent points to 3.4 per cent in 2021 from -1.96 per cent in 2020.
“Nigeria’s real GDP at basic prices
In Q3 2021, the Gross Domestic Product inclined in real terms by 4.03 per cent YoY and recorded 3.9 per cent in Q4’21. This shows a sustained positive trajectory since Q4′ 20.
“However, on an annual basis in 2021, the Gross Domestic Product grew in real terms by 3.4 per cent on a YoY basis. This was significantly higher compared to -1.92 per cent recorded in 2020, and 2.27 per cent recorded in 2019. ”
The bureau further said that net exports and imports fell in 2021 resulting in a fall in the growth of net balance of trade in Q1-Q3 of 2021.
The report stated:” Net exports grew in real terms in Q3 and Q4 2021 by -38.2 per cent and 1.35 per cent respectively.
“On an annual basis, net exports grew by -55.7 per cent in 2021 compared to -13.17 per cent recorded in 2020.
” In 2020, imports of goods and services declined significantly in the four quarters of the year in real terms, recording -46.3 per cent in Q1, -70.05 per cent in Q2, -62.51 per cent in Q3 and -66.86 per cent in Q4 2020.
“On an annual basis however, the real growth of imports was worse off than 2019, at -61.94 per cent in 2020 compared to 27.26 per cent in the previous year. “Moreover, Imports grew in the four quarters of 2021 recording 55.06 per cent and 56.2 per cent in Q3 and Q4 2021.
“In response to falling growths in exports and imports in 2020, growth in net balance of trade (or net exports) was negative in Q1- Q3 2021 but positive in Q4 2021.
“On a YoY basis, Q3 recorded -38.2 per cent growth rate in real terms and Q4 indicated 1.35 per cent growth in the net trade balance.
“Annual growth rate of -55.7 per cent in real terms was recorded compared to -13.17 per cent in 2020.
“On a quarter-on-quarter basis, the net trade balance grew by –4.76 per cent and 6.38 per cent in Q3 and Q4 2021 respectively.
“This component accounted for 6.97 per cent of total real GDP expenditure at market prices in 2021.
“Operating Surplus grew negatively by -1.01 per cent in Q3, while 0.7 per cent was recorded in Q4’21 on a YoY basis in real terms.
“This indicator had recorded negative growth since Q2’20 but stood positive in Q4 ’21.
“The negative growth witnessed in the last three quarters of 2020 led to an annual real growth rate of -3.07 per cent, but improved slightly to -1.80 per cent observed in 2021. “