Business

Nigerian Economy Shrinks By N63bn, 28 Sectors Struggle

Published

3 years ago

August 30, 2022

Editor

Twenty-eight sectors of the economy declined in the second quarter of 2022 as real Gross Domestic Product shrunk by N63.49bn quarter-on-quarter.

While real GDP grew by 3.54 per cent year-on-year in Q2 2022, it declined by 0.37 per cent from the N17.35tn that was recorded in the first quarter of 2021 to N17.29tn in Q2, 2022, according to data from the National Bureau of Statistics, NBS.

The NBS blamed this decline on lower economic activity that was witnessed in Q1 2021. The analysis of real GDP data revealed that only 18 of the 46 NBS captured economic activity sectors experienced growth in the quarter under review.

According to the data from the statistics body, the agriculture sector witnessed mixed positives, with two sub-sectors witnessing growth and the other two recording a decline. Crop production grew from N3.39tn to N3.59tn; livestock declined from N318.49bn to N282.02bn; forestry grew from N44.14bn to N51.28bn; while fishing declined from N125.46bn to N88.3bn.

In the mining and quarrying sector, crude petroleum and natural gas declined from N1.15tn to N1.09tn; coal mining grew from N1.61bn to N4.79bn; metal ores declined from N4.87bn to N1.26bn; and quarrying other minerals grew from N363.29m to N25.51bn.

The 2022 has been a tough year for the manufacturing sector with inflation and foreign exchange scarcity negatively impacting growth. Only three of the 13 subsectors in the manufacturing sector recorded any growth in the quarter under review.

Oil refining grew from N1.66bn to N2.82bn; cement declined from N188.81bn to N143.74bn; food, beverage and tobacco declined from N875.94bn to N760.08bn; textile, apparel, and footwear declined from N342.48bn to N283.34bn; wood and wood products declined from N53.81bn to N44.41bn; whereas pulp, paper, and paper products declined from N13.38bn to N9.70bn.

Chemical and pharmaceutical products grew from N42.75bn to N47.37bn; non-metallic products declined from N63.52bn to N49.24bn; plastic and rubber products declined from N60.12bn to N53.01bn; electrical and electronics increased from N839.34m to N921.50m; basic metal, iron and steel declined from N39.93bn to N37.31bn; motor vehicles and assembly declined from N9.53bn to N7.63bn; and other manufacturing declined from N76.07bn to N55.55bn

The electricity, gas, steam and air conditioning supply sector grew from N32.72bn to N118.79bn. The water supply, sewerage, waste management and remediation sector grew from N39.06bn to N61.12bn. Construction declined from N725.99bn to N554.11bn. The trade sector grew from N2.79tn to N2.91tn.

Accommodation and food services also recorded a decline from N173.41bn to N68.17bn. Under the transportation and storage sector, road transport grew from N151.97bn to N293.85bn; rail transport and pipelines declined from N40.96m to 19.92m; water transport increased from N802.77m to N1.04bn; air transport declined from N25.26bn to N9.69bn; transport services grew from N7.11bn to N11.14bn; and post and courier services declined from N6.26bn to N2.42bn.

Seen as one of the bright spots of the economy, telecommunications and information services under the information and communication sector grew from N2.25tn to N2.59tn; publishing declined from N5.45bn to N4.66bn; motion pictures, sound recording and music production declined from N229.67bn to N157.57bn; and broadcasting grew from N330.47bn to N433.43bn.

The arts, entertainment and recreation sector declined from N35.69bn to N51.85bn. In the financial and insurance sector, the financial institutions subsector declined and insurance declined from N85.11bn to N80.18bn.

The real estate sector was one of the sectors that shrunk, declining from N927.32bn to N920.49bn. The professional, scientific and technical services sector fell from N560.47bn to N525.94bn; administrative and support services grew from N3.39bn to N3.54bn; public administration also grew from N283.59bn to N375.59bn, but education fell from N333.06bn to N231.85bn.

While the other services sector declined from N702.74bn to N473.72bn, the human health and social services sector increased from N126.01bn to N131.28bn.

According to Associate Professor of Economics at the Pan Atlantic University, Olalekan Aworinde, real GDP was the true reflection of the economic status of a country.

He said, “Nominal GDP is the market value of goods and services produced at a particular period. Real GDP is when you have the nominal GDP, and inflation factored in. It is the nominal GDP indexed with inflation.”

In a statement addressing the general GDP, the Founder /Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, disclosed that productivity and competitiveness issues had continued to negatively impact performance across sectors of the economy.

He stated that the general operating environment of the nation was also very challenging for most investors, with SMEs particularly more vulnerable to prevailing macroeconomic shocks, resulting in high mortality rate for small businesses.

He said, “Many businesses are struggling to cope with the numerous challenges and shocks to the economy. On the welfare front, the citizens are also experiencing serious economic hardship as a result of the galloping inflation and the impact on purchasing power.”

PUNCH

Business

Fuel Scarcity Looms As PENGASSAN Stops Gas, Crude Supply To Dangote Refinery

Published

51 minutes ago

September 27, 2025

Editor

The industrial dispute between the Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria took a dramatic turn on Saturday as the union ordered seven branches to cut off crude oil and gas supplies to the $20bn facility.

In a letter dated September 26 and signed by its General Secretary, Lumumba Okugbawa, the union accused the refinery’s management of sacking its members in retaliation for exercising their constitutional right to join the union.

The union’s move marks an escalation in the standoff, with PENGASSAN accusing the refinery of anti-labour practices and the unlawful sack of its members.

In the directive issued to its branch chairmen, PENGASSAN instructed its branch chairmen in key upstream and midstream oil companies, including TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, and Nigerian Gas Infrastructure Company, to immediately cut off all crude oil and gas supplies to the refinery.

The directive comes after PENGASSAN alleged that Nigerian workers were sacked by Dangote Refinery after joining the union, claiming that management also withdrew staff buses and denied entry to locals while allowing expatriates access.

The union threatened to picket the refinery if the situation was not addressed.

In a statement on Friday, the refinery clarified that only a small number of workers were affected by what it described as a reorganisation aimed at preventing acts of sabotage within the facility. It said over 3,000 Nigerians remain in employment, rejecting claims of mass layoffs.

Dangote maintained that the restructuring was necessary after what it described as recurring acts of sabotage in different units of the refinery, which posed serious risks to human lives and operations.

As a result, PENGASSAN instructed its branches in TotalEnergies, Seplat, Chevron, Oando, Shell Nigeria Gas, Renaissance, and NGIC to cut gas supply to the refinery immediately.

The union described the move as “illegitimate” and accused the refinery of spreading misinformation instead of addressing the matter through dialogue.

“As you are aware, the Management of Dangote Petroleum Refinery has disengaged our members in reaction to the exercise of their constitutional right to being unionized.

“They have gone further on a mission of misinformation and propaganda to justify this illegitimacy rather than engaging meaningfully with us to right the wrong.

“Consequent to these, you are hereby directed to cut off gas supply to NGIC effective immediately. All crude oil supply valves to the Refinery should be shut. The loading operation for vessel headed there should be halted immediately,” the directive read.

The union further mandated the NGIC Chairman to ensure strict compliance with the order and told all branch chairmen to give regular updates on the action taken.

“NGIC Chairman, ensure that gas supply to the Refinery is cut off effective immediately. All chairmen on this summons are to report promptly the progress of the directive. Kindly accept the assurances of our highest esteem. Thank you,” the statement read.

Reaffirming its solidarity, PENGASSAN ended the directive with its slogan: “Injury to one! Injury to all!”

On Thursday, the company announced it would suspend petrol sales in naira from September 28 following the exhaustion of its crude-for-naira allocations.

Business

Fuel Price Hike Looms As Dangote Refinery Stops Petrol Sales In Naira

Published

9 hours ago

September 27, 2025

Editor

The Dangote Petroleum Refinery has announced the suspension of petrol sales in naira, unsettling marketers and raising fresh concerns over fuel pricing and foreign exchange pressure.

In an email sent to customers at 6:42 p.m. on Friday, the refinery said the decision would take effect from Sunday, September 28, 2025, citing the exhaustion of its crude-for-naira allocation as the reason.

The notice, titled “Suspension of DPRP PMS Naira Sales – Effective 28th September 2025” and signed by the Group Commercial Operations of Dangote Petroleum Refinery & Petrochemicals, also asked customers with ongoing naira-based transactions to formally request refunds.

“We write to inform you that Dangote Petroleum Refinery & Petrochemicals has been selling petroleum products in excess of our Naira-Crude allocations and, consequently, we are unable to sustain PMS sales in Naira going forward,” the statement read.

“Kindly note that this suspension of Naira sales for PMS will be effective from Sunday, 28th of September, 2025. We will provide further updates regarding the resumption of supply once the situation has been resolved.

“All customers with PMS transactions in Naira who would like a refund of their current payments should formally request the processing of their refund.”

The move comes amid a raging dispute between the refinery and labour unions over the alleged mass sack of more than 800 Nigerian workers. This controversy has drawn public outrage and calls for government intervention.

This is the second time the refinery has halted local currency transactions. In March 2025, it briefly suspended sales of refined products in naira, blaming inadequate allocations under the crude-for-naira programme.

Business

Naira Appreciates Massively Against US Dollar In The Black Market, Highest In 15 Months

Published

2 days ago

September 25, 2025

Editor

The naira appreciated massively against the United States dollar at the parallel foreign exchange market.

Abubakar Alhasan, a Bureau De Change operator in Wuse Zone, Abuja, told DAILY POST that the Naira strengthened significantly to N1,490 per dollar on Wednesday, up from N1,520 on Tuesday.

“We buy at N1480 and sell at N1490 on Wednesday due to lower FX demand,” Alhasan confirmed to newsmen.

This means that the Naira gained N30 against the dollar on a day-to-day basis.

The last time they were exchanged at this level in the black market was in June 2024.

Meanwhile, at the official market, it dropped marginally by N1.19 to N1,488.56 per dollar on Wednesday, down from N1,487.37, according to data from the Central Bank of Nigeria.

Analysing the trend at both markets, the difference between official and parallel markets has shrunk to 1.44.

Recall that on Tuesday, the Naira appreciated across official and parallel foreign exchange markets upon an interest rate cut by the apex bank by 50 basis points to 27 per cent.