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Amidst escalating uncertainties within the macroeconomic landscape, Nigeria’s Gross Domestic Product (GDP) exhibited a growth of 2.51% year-on-year in real terms during the second quarter of 2023, as per the latest data release from the National Bureau of Statistics.
This growth rate reflects a decline from the 3.54% recorded in the second quarter of 2022 and could be attributed to the prevailing challenging economic conditions. The performance of the GDP in Q2 2023 was primarily driven by the Services sector, which achieved a growth rate of 4.42% and contributed 58.42% to the overall GDP.
The agriculture sector experienced a growth of 1.50%, an improvement from the 1.20% growth recorded in the corresponding period of 2022. Conversely, the industry sector’s growth was -1.94% compared to -2.30% in Q2 2022.
When considering the GDP’s composition, agriculture and industry sectors contributed less to the total GDP in Q2 2023 compared to the same period in 2022. The nominal aggregate GDP for the quarter stood at N52,103,927.13 million, which is higher than the N45,004,520.89 million recorded in Q2 2022, signifying a year-on-year nominal growth of 15.77%.
For better clarification, the Nigerian economy is broadly categorized into the oil and non-oil sectors.
During Q2 2023, Nigeria observed an average daily oil production of 1.22 million barrels per day (mbpd), a decrease from the average daily production of 1.43 mbpd in the same quarter of 2022, down by 0.22 mbpd. Additionally, it was lower than the production volume of 1.51 mbpd in Q1 2023, down by 0.29 mbpd.
The real growth of the oil sector in Q2 2023 was -13.43% year-on-year, indicating a drop of 1.66% points compared to the rate registered in the corresponding quarter of 2022, when it declined by -11.77%. This decline was even more significant, down by 9.22% points compared to Q1 2023, which saw a contraction of -4.21%. On a quarter-on-quarter basis, the oil sector’s growth rate was -14.12% in Q2 2023.
The contribution of the oil sector to the total real GDP in Q2 2023 was 5.34%, a decline from the figures observed in the same period of 2022 and the preceding quarter, where it accounted for 6.33% and 6.21% respectively.
On the other hand, the non-oil sector posted a growth of 3.58% in real terms during the reference quarter (Q2 2023). This figure marked a decrease of 1.19% points compared to the same period in 2022 but was 0.81% points higher than Q1 2023.
The second quarter of 2023 witnessed the dominance of the Information and Communication, Financial and Insurance, Trade, and Agriculture sectors within the non-oil sector. This also encompassed Manufacturing (Food, Beverage & Tobacco), Construction, and Real Estate, contributing to the positive GDP growth. In real terms, the non-oil sector constituted 94.66% of the nation’s GDP in Q2 2023, an increase from the shares recorded in the same period of 2022 (93.67%) and Q1 2023 (93.79%).
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