GDP drops to 2.51% in Q2 2023

Nigeria’s Gross Domestic Product (GDP) grew by 2.51 per cent in the second quarter of 2023, the National Bureau of Statistics (NBS) has disclosed.

In a statement on Friday, the bureau said the figure reduced by 1.03 percentage points than the rate recorded in Q2 2022 (3.54%), but higher by 0.20% percentage points relative to 2.31% recorded in the first quarter of 2022.

It stated that the GDP grew slower than the previous quarter due to the reduction of the daily average production of crude oil which fell to 1.22 million barrels per day.

The figure was lower from the 1.43 mbpd and 1.51 mbpd recorded in the same quarter of 2022 and the Q1 2023 by 0.22 mbpd and 0.29 mbpd, respectively.

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It added 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.

“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.”