Nigeria’s GDP dropped to 2.31% in Q1 2023, says NBS
The National Bureau of Statistics (NBS) on Wednesday disclosed that Nigeria’s Gross Domestic Product (GDP) dropped to 2.31per cent (year-on-year) in real terms in the first quarter (Q1) of 2023 as against 3.11 per cent reported in first quarter (Q1) of 2022.
The bureau attributed the decline to the adverse effects of the cash crunch experienced during the quarter.
NBS said: “The performance of the GDP in the first quarter of 2023 was driven mainly by the Services sector, which recorded a growth of 4.35 per cent and contributed 57.29per cent to the aggregate GDP. The agriculture sector grew by -0.90 per cent, lower than the growth of 3.16 per cent recorded in the first quarter of 2022.
“Although the growth of the industry sector improved to 0.31 per cent relative to – 6.81 per cent recorded in the first quarter of 2022, agriculture, and the industry sectors contributed less to the aggregate GDP in the quarter under review compared to the first quarter of 2022.”
“In the quarter under review, aggregate GDP stood at N51,242,151.21 million in nominal terms. This performance is higher when compared to the first quarter of 2022 which recorded aggregate GDP of N45,317,823.33 million, indicating a year-on-year nominal growth of 13.07per cent.”
Oil & Gas Sector
The report said the nation in the first quarter of 2023 recorded an average daily oil production of 1.51 million barrels per day (mbpd), higher than the daily average production of 1.49mbpd recorded in the same quarter of 2022 by 0.01mbpd and higher than the fourth quarter of 2022 production volume of 1.34 mbpd by 0.17mbpd.
The real growth of the oil sector was –4.21per cent (year-on-year) in Q1 2023, indicating an increase of 21.83 per cent points relative to the rate recorded in the corresponding quarter of 2022 (-26.04 per cent). Growth increased by 9.18per cent points when compared to Q4 2022 which was –13.38 per cent.
On a quarter-on-quarter basis, the oil sector recorded a growth rate of 20.68 per cent in Q1 2023. The sector contributed 6.21 per cent to the total real GDP in Q1 2023, down from the figure recorded in the corresponding period of 2022 and up from the preceding quarter, where it contributed 6.63per cent and 4.34 per cent respectively.
The non-oil sector grew by 2.77 per cent in real terms during the reference quarter. This rate was lower by 3.30 per cent points compared to the rate recorded in the same quarter of 2022 and 1.67 per cent points lower than the fourth quarter of 2022. This sector was driven in the first quarter of 2023 mainly by Information and Communication (Telecommunication); Financial and Insurance (Financial Institutions); Trade; Manufacturing (Food, Beverage & Tobacco); Construction; and Transportation & Storage (Road Transport), accounting for positive GDP growth.
In real terms, the non-oil sector contributed 93.79 per cent to the nation’s GDP in the first quarter of 2023, higher than the share recorded in the first quarter of 2022 which was 93.37 per cent and lower than the fourth quarter of 2022 recorded as 95.66 per cent.