By Adedapo Adesanya
Nigeria’s economy, measured by Gross Domestic Product (GDP), grew by 2.51 per cent year-on-year in real terms in the second quarter of 2023, according to the latest data released by the National Bureau of Statistics (NBS).
According to the numbers seen by Business Post, this is 0.2 per cent points higher than the 2.31 per cent recorded in the previous quarter (first quarter of 2023).
However, on a year-on-year basis, the number is 1.03 power lower than the 3.54 per cent recorded in the corresponding period of 2022 (Q2 2022).
The performance of the GDP in the second quarter of 2023 was driven mainly by the services sector, which recorded a growth of 4.42 per cent and contributed 58.42 per cent to the aggregate GDP.
The agriculture sector grew by 1.50 per cent, an improvement from the growth of 1.2 per cent recorded in the second quarter of 2022.
The growth of the industry sector stood at -1.94 per cent relative to -2.3 per cent recorded in the second quarter of 2022. In terms of share of the GDP, agriculture and the industry sectors contributed less to the aggregate GDP in the second quarter of 2023 compared to the second quarter of 2022.
The real growth of the oil sector continued as it slowed –13.43 per cent (year-on-year) in Q2 2023, indicating a decrease of 1.66 per cent points relative to the rate recorded in the corresponding quarter of 2022 (-11.77 per cent).
Growth also decreased by 9.22 per cent points when compared to Q1 2023, which was – 4.21 per cent.
The Oil sector contributed 5.34 per cent to the total real GDP in Q2 2023, down from the figure recorded in the corresponding period of 2022 and down from the preceding quarter, where it contributed 6.33 per cent and 6.21 per cent, respectively.
The nation, in the second quarter of 2023, recorded an average daily oil production of 1.22 million barrels per day, lower than the daily average production of 1.43 million barrels per day recorded in the same quarter of 2022 by 0.22 million barrels per day and lower than the first quarter of 2023 production volume of 1.51 million barrels per day by 0.29 million barrels per day.
The non-oil sector grew by 3.58 per cent in real terms during the reviewed period. This rate was lower by 1.19 per cent points compared to the rate recorded in the same quarter of 2022 and 0.81 per cent points higher than the first quarter of 2023.
This sector was driven in the second quarter of 2023 mainly by Information and Communication (Telecommunication); Financial and Insurance (Financial Institutions); Trade; Agriculture (Crop production); Manufacturing (Food, Beverage & Tobacco); Construction; and Real Estate, accounting for positive GDP growth.
In real terms, the non-oil sector contributed 94.66 per cent to the nation’s GDP in the second quarter of 2023, higher than the share recorded in the second quarter of 2022, which was 93.67 per cent and higher than the first quarter of 2023 recorded as 93.79 per cent.
Modupe Gbadeyanka