Nigeria’s Gross Domestic Product (GDP) expanded to 2.51% in the second quarter of 2023, as revealed by the National Bureau of Statistics (NBS).
In a statement released on Friday, the NBS noted that this figure marked a 1.03 percentage point decrease from the rate recorded in the same period of 2022 (3.54%).
However, it reflected a 0.20% percentage point increase compared to the first quarter of 2022, which saw a growth rate of 2.31%.
The NBS attributed the slower GDP growth in Q2 2023 to the decline in daily average crude oil production, which fell to 1.22 million barrels per day.
This figure was notably lower than the 1.43 million barrels per day and 1.51 million barrels per day recorded in the second quarter of 2022 and the first quarter of 2023, respectively.
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It further disclosed that the GDP growth rate in real terms (Constant price) grew by 2.51 per cent in the second quarter (Q2) of 2023 on a year-on-year basis, while major driver of the economy is the services sector which recorded a growth of 4.42 per cent and contributed 58.42 per cent to the aggregate GDP.
“The economic activity in real terms for Q2 2023 stood at N17.7tr, which is lower than the rates recorded in Q1 2023 N17.7tr but higher than Q2 2022 which stood at N17.2tr.
“This highlighted the shortfall in production level in the quarter under review when compared with the previous quarters of Q1 2023 but higher than the corresponding quarter of Q2 2022.”
The statement showed that the agricultural sector grew despite the spate of insecurity in the country.
It stated that crop production is one of major contributing economic activities in real terms with 20.66 per cent contribution, followed by trade 16.80 per cent, telecommunication 16.06 per cent, crude petroleum 5.34 per cent and real estate 5.29 per cent.
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“On a broad classification of the economic activities into Agriculture, Industry, and Services sectors based on growth, the Agricultural Sector grew by 1.50 per cent in Q2 2023 in real terms, which is higher than Q2 2022 which recorded 1.20 per cent. The industry grew by -1.94 per cent in Q2 2023, which shows an improvement when compared to the figure recorded in Q2 2022 which was -2.30 per cent. While the services sector grew by 4.42 per cent but less than 6.70 per cent recorded in Q2 2022.”
It added that the oil GDP grew by -13.43 percent which shows a decline when compared to -11.77% in Q2 2022 and the previous quarter of Q1 2023 which recorded -4.21%.
“Similarly, the oil sector accounted for 5.34% during the quarter under review,” it said.
On the other hand, the non-oil sector contributed 94.66 per cent to the GDP in real terms.
“This shows an increase on a year-on-year basis when compared to the same period in Q2 2022 which stood at 93.67 per cent. This is also higher than Q1 2023 which recorded 93.79 per cent.”