Nigeria’s Gross Domestic Product (GDP) grew by 2.51 percent (year-on-year) in real terms in the second quarter of 2023, lower than 3.54 percent recorded in the second quarter of 2022.
The National bureau of statistics has attributed 2.51 percent growth to challenging economic conditions being experienced in the country.
According to the report which was released on Friday, in the quarter under review, aggregate GDP stood at N52.103 million in nominal terms, higher when compared to the second quarter of 2022 which recorded aggregate GDP of N45 million, and ₦51,242,151.21 million in the preceding quarter.
The report indicated that the performance of the GDP in the period under review was driven mainly by the Services sector, which recorded a growth of 4.42 percent and contributed 58.42 percent to the aggregate GDP.
“The agriculture sector grew by 1.50 percent, an improvement from the growth of 1.20percent recorded in the second quarter of 2022. The growth of the industry sector was -1.94 percent relative to -2.30 percent recorded in the second quarter of 2022.
“In terms of share to 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.” It stated.
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Further breakdown of the report showed that the industry sector grew by -1.94 percent relative to -2.30 percent recorded in the second quarter of 2022. In terms of share to 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 report showed that the nation, in the second quarter of 2023 recorded an average daily oil production of 1.22 million barrels per day (mbpd), lower than the daily average production of 1.43mbpd recorded in the same quarter of 2022 by 0.22mbpd and lower than the first quarter of 2023 production volume of 1.51 mbpd by 0.29mbpd.
The real growth of the oil sector was –13.43 percent (year-on-year) in Q2 2023, indicating a decrease of 1.66 percent points relative to the rate recorded in the corresponding quarter of 2022 (-11.77percent). Growth also decreased by 9.22 percent points when compared to Q1 2023 which was –4.2 percent.
On a quarter-on-quarter basis, the oil sector recorded a growth rate of -14.12 percent in Q2 2023. The Oil sector contributed 5.34 percent 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 percent and 6.21 percent respectively.
On the other hand, the non-oil sector grew by 3.58 percent in real terms during the period, this rate is lower by 1.19 percent compared to the rate recorded in the same quarter of 2022 and 0.81 percent 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.
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In real terms, the non-oil sector contributed 94.66 percent 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 percent and higher than the first quarter of 2023 recorded as 93.79 percent.
The Statistician-General of the federation, Adeyemi Adeniran, attributed the economic performance of the non-oil sector to the growth recorded in some economic activities, like crop Production in the Agriculture sector, Trade, Telecommunication, Real Estate in the Services Sector, and Crude petroleum in the Mining and quarrying sector.
For him, the major contributing economic activities in real terms in the quarter under review are Crop Production 20.66 percent, Trade 16.80 percent, Telecommunication 16.06 percent, Crude petroleum 5.34 percent, and Real Estate 5.29 percent.
According to Adeniran, the economic activity in real terms for Q2 2023 stood at ₦17,719,335.38 million, which is lower than the rates recorded in Q1 2023 (₦17,750,060.97) but higher than Q2 2022 which stood at ₦17,285,882.91. “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.
“In nominal terms (current price), aggregate GDP stood at ₦52,103,927.13 in Q2 2023, indicating a year-on-year nominal growth rate of 15.77 percent. This is higher than the value of ₦45,004,520.89 million in Q2 2022 and ₦51,242,151.21 million in the preceding quarter,” he said.
