By Chinelo Obogo, [email protected]
The contribution of the aviation sector and other transportation services to Nigeria’s GDP declined in Q2 2024 compared to both the previous year and the previous quarter.
According to the latest report of the National Bureau of Statistics (NBS), the air, road, rail and water transport, including post and courier services, contributed 1.05 per cent to nominal GDP in Q2 2024, a decrease from the 1.35 per cent recorded in the corresponding period of 2023, and lower than the 1.66 per cent recorded in the first quarter of 2024. While the nominal growth was not adjusted for inflation and was less negative compared to the previous year, it was still below the positive growth rate of the previous quarter.
The transport sector contributed 0.74 per cent to the real GDP in the same quarter, lower than the 0.89 per cent recorded in the preceding year and lower than 1.18 per cent recorded in the first quarter of 2024. This negative growth rate indicates a decline in output adjusted for inflation.
A breakdown of the sectoral contributions to Nigeria’s GDP based on data from the NBS, shows that the sector with the largest contribution are finance and insurance, accounting for 28.79 per cent, while the water supply sector comes second with 8.20 per cent, mining and quarrying contributes 7.79 per cent.
Others are electricity, 5.96 per cent, ICT, 4.44 per cent, health, 2.41 per cent, education,1.92 per cent, public administration,1.85 per cent, arts and entertainment, 1.79 per cent, agriculture,1.41 per cent, manufacturing,1.28 per cent, construction,1.05 per cent, real estate, 0.75 per cent and trade, 0.70 per cent.
Transportation is the only sector with a negative contribution, at -13.53 per cent and this indicates that the industry is cutting down from the country’s overall GDP growth.
The NBS also revealed in the transport sector grew by -9.08 per cent in nominal terms in the second quarter of 2024 (year-on-year). This rate was higher relative to the figure of -44.16 per cent recorded for the corresponding quarter of 2023 and lower than
11.75 per cent in the previous quarter. Five of six sub-activities under the transport and storage industry recorded positive growth rates in the second quarter of 2024. Quarter-on-quarter growth stood at -34.65 per cent.
In real terms, the transportation and storage sector grew by -13.53 per cent in Q2 2024. This rate represents an increase of 37.11 per cent points compared to the same quarter of the previous year and a decrease of 16.86 per cent points relative to the preceding quarter. Quarter-on-quarter, growth was -37.24 per cent.