The recently released GDP report by the National Bureau of Statistics shows that some sectors recorded growth despite a hard year of battling a pandemic and an economic recession.
Although the full-year GDP contracted by 1.92 per cent in 2020 from a growth of 2.27 the previous year, Nigeria has exited recession as GDP grew 0.11 per cent in the fourth quarter, lifted by some resilient sectors.
These are the best performing sectors in the fourth quarter of 2020
Quarrying and other Mineral sector
The Quarrying and other Mineral sector emerged the best performing sector in 2020, growing 21.16 percent compared to a contraction of 5.63 percent in 2019 and 48.42 percent in the third quarter 0f 2019.
However, the overall mining and quarrying sector still contracted 8.54 per cent in 2020, dragged by crude petroleum and natural gas, coal mining and metal ores which plunged 8.89 per cent, 20.50 per cent and 5.85 per cent respectively.
Telecommunications and Information
The Telecommunications and Information sector took the second spot of top performers, growing by 15.90 percent in 2020 compared to 11.41 percent in 2019 and 17.64 percent in the fourth quarter of 2020.
This sector drove the overall performance of the information and communications sector to 12.90 percent, up from 11.08 percent recorded in 2019.
Financial Institutions
Financial institutions emerged the third best performing sector in 2020, growing by 13.34 percent compared to 2.24 percent in 2019.
Although the sector contracted 2.48 percent in the fourth quarter of 2020, the contraction was offset by the strong growth recorded in the other quarters.
The overall financial and insurance sector grew 9.37 in 2020 from 2.56 in 2019. This growth was mainly driven by the financial institutions as the insurance sector plunged 15.30 percent.
Broadcasting
This sector under the information and communications sector grew 4.85 percent in 2020 compared to 2.29 percent in 2019 and 4.42 percent in Q4’20.
The broadcasting sector alongside the telecommunication sectors were the only sectors that boosted the growth of the information and communications sector.
Motor vehicles and assembly
Motor vehicles and assembly recorded a growth of 4.03 percent, higher than 2.31 recorded in 2019 and 2.02 percent recorded in the fourth quarter of 2020.
This sector grew 1.04 percent, 6.95 percent and 7.03 percent in the first, second and third quarter of 2020.
Worst performers
While some sectors remained resilient in the year 2020, the pandemic and the economic recession put a strain on some other sectors of the economy resulting in a meagre performance compared to other sectors.
Oil refining
Oil refining contracted by 66.2 percent in 2020 compared to a contraction of 31.39 percent in the previous year, and 56.50 recorded in the second quarter of 2020.
Air Transport
The Covid-19 induced lockdown led to a contraction of 36.98 percent in air transport, waning from a growth of 13.17 percent in year 2019.
The Air transport recorded a 5.68 percent in the first quarter of 2020 after which it contracted by 57.38 percent, 38.86 percent and 51.69 percent in the second, third and fourth quarter respectively.
Rail Transport and Pipeline
Rail transport and pipeline also contracted by 33.64 percent in 2020 compared to 1.74 in 2019, and 11.99 in the fourth quarter of 2020.
Road Transport
Reeling from the effect of the pandemic, the road transport sector also contracted by 22.25 percent in 2020compared to a growth of 11.24 percent in 2019, and 1.37 percent in Q4’2020.
Coal Mining
Coal Mining also contracted by per cent 20.50 compared to a growth of 13.15 in the full year of 2019 and contracted 23.16 in the fourth quarter of 2020.
