Q2 2021: LCCI attributes growth to ease of movement, increase in non-oil activities

The Lagos Chamber of Commerce and Industry (LCCI) has attributed the 5 percent growth in the nation’s Gross Domestic Product (GDP), recorded in the second quarter of the year, to the gradual ease of movement and increase in non-oil activities.

Tribune Online reports that the National Bureau of Statistics (NBS) recently released the national accounts for Q2 2021 showing a 5.0% GDP growth y/y, compared with 0.5% recorded in Q1 2021.

The Chamber, in a statement, tagged ‘Second Quarter 2021 Gross Domestic Product (GDP) Report’, and signed by its Director-General, Dr Chinyere Almona, described the performance as a strong and more desirable growth, considering the 6.7percent growth recorded in the non-oil sector, and when compared with the 0.79 percent in Q1.

“This shows an increase in non-oil sector activities through growth in Trade, Information and Communication (Telecommunication), Transportation (Road Transport), Electricity, Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco),” the business advocacy group argued.

It identified the loss of jobs, due to the negative effects of the Covid 19 pandemic, as one of the factors that had driven more people into the retail trade, commerce, and logistics, adding that the development had further bolstered activities in the non-oil sector.

The Chamber also believes the positive growth in the transport sub-sectors like road and rail transport may have also had some positive impact on trade with the easing of movement.

“This is also evident that the Nigerian economy is recovering fast and sustained by the reduction in supply chain disruptions especially as there was no serious lockdown on economic activities in the second quarter,” the Chamber stated.

The Chamber, however, cautioned that the major threats to the growth performance, such as the third wave of COVID-19 infections, must be responded to appropriately; since it could lead to restrictions of movements.

It also argued that the rising spate of insurgency, banditry, kidnapping, and the persistent farmer/herder conflicts, could reverse whatever gains that must have been recorded in the second quarter, if not dealt with, effectively.

On the contraction in ICT growth in Q2, as shown in the 5.50% growth in Q2 2021 from 6.31% in Q1 2021 and 16.52% in Q2 2020, Chamber would rather see it as ‘a base effect factor’.

The group argued that the concentration on the use of ICT during the lockdown periods of 2020, resulting in a double-digit growth rate, might have slightly reduced since comparatively fewer people work from home, as against what obtained in the year 2020.

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