Nigeria’s Fastest Growing Sectors in Q3 2022

Nigeria’s transportation and banking sectors, which registered real growth rates of 41.59% and 12.7%, respectively, were at the top of the list of the fastest-growing sectors in the third quarter of 2022.

This is stated in the National Bureau of Statistics’ (NBS) Q3 2022 Gross Domestic Product (GDP) report.

In Q3 2022, the Nigerian economy grew by 2.25% in real terms year over year, mostly due to progress in the non-oil sector. However, due to regional and global limitations, growth was slower than it had been the previous quarter (3.54%).

While four of the nineteen sectors showed declines, fifteen of them showed positive year-over-year growth in the broad sectoral disaggregation. 

Manufacturing (1.91%), other services (2.67%), power (3.56%), and mining and quarrying (21.31%) were the industries with negative growth over the period.

Without further ado, let’s take a look at some of Nigeria’s fastest-growing sectors in Q3 2022.

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1. Transport and storage (41.59%) 

One of Nigeria’s fastest-growing sectors is the transportation and storage sector. The sector experienced a growth of 41.59% in Q3 2022. However, because of the decline in the pipeline and rail transportation subsectors, it expanded more slowly than it did the previous quarter.

According to the breakdown, road transport, which makes up 83.6% of the entire sector, grew by 49.68% year over year, which is slower than the 56.38% observed in Q2 2022 but higher than the 21.11% observed in the same time of 2021.

Compared to Q2 2022, when the water transport subsector grew by 3.02%, it grew by 19.48% in Q3 2022.

Air travel increased by 14.58%, while transportation services climbed by 6.66% and post and courier services increased by 5.36% year over year in real terms.

2. Finance and insurance (12.7%)

The third quarter of the year saw the finance and insurance industry increase by 12.7% year over year in real terms, which was a slower rate than the 18.48% growth seen in the second quarter and the 23.24% growth seen in Q1 2022.

With an estimated quarterly revenue of N660.8 billion and an estimated total annual revenue of N2.9 trillion, the industry represents 3.49% of the national economy.

Approximately 90% of the sector is made up of the financial subsector, which increased by 12.03% year over year from the 20.06% recorded in the previous quarter.

On the other side, the insurance subsector saw growth of 19.09% year over year, exceeding the 6.96% seen in the prior quarter.

3. Information and communication (10.53%)

In Q3 2022, the ICT industry expanded by 10.53% year over year, which is an improvement above the 6.55% growth rate seen in the previous quarter. About 15.4% of the country’s GDP is generated by the information and communication sector.

The telecommunications sector, which includes some of the biggest corporations in the nation and makes up 83.7% of the ICT sector, increased by 10.53% year over year from 6.55% in the previous quarter.

Compared to the 3.43% growth seen in Q2 2022, the Publishing subsector posted a 12.06% growth in the quarter under review. While Motion picture posted a 6.58% year-over-year rise, the film, sound recording, and music industries all saw 22.41% growth.

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