Amid economic reforms of the President Bola Tinubu’s administration, Nigeria’s Gross Domestic Product (GDP) dragged down from 3.54 per cent growth recorded in the second quarter of 2022 to 2.51 per cent (year-on-year) real terms in the second quarter of 2023, National Bureau of Statistics (NBS) confirmed on Friday.
Going by the NBS record, GDP performance in quarter reference was driven mainly by the Services sector, which recorded a growth of 4.42% and contributed 58.42% to the aggregate GDP.
The agriculture sector grew by 1.50%, an improvement from the growth of 1.20% recorded in the second quarter of 2022.
The industry sector growth was -1.94% relative to -2.30% recorded in the second quarter of 2022.
In terms of share of 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.
” In the quarter under review, aggregate GDP stood at N52,103,927.13 million in nominal terms. This performance is higher when compared to the second quarter of 2022 which recorded aggregate GDP of N45, 004,520.89 million, indicating a year-on-year nominal growth of 15.77%”, the NBS said.
In sectoral analysis, the oil sector 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 mbp mbpd by 0.29mbpd.
According to NBS, the real growth of the oil sector was –13.43 (year-on-year) in Q2 2023, indicating a decrease of 1.66% points relative to the rate recorded in the corresponding quarter of 2022 (-11.77%).
Growth also decreased by 9.22% points when compared to Q1 2023 which was –4.21%.
On a quarter-on-quarter basis, the oil sector recorded a growth rate of -14.12% in Q2 2023. The Oil sector contributed 5.34% 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% and 6.21% respectively.
Relatedly, the non-oil sector grew by 3.58% in real terms during the reference quarter (Q2 2023). The rate was lower by 1.19% points compared to the rate recorded in the same quarter of 2022 and 0.81% points higher than the first quarter of 2023.
Non oil 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.
“In real terms, the non-oil sector contributed 94.66% 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% and higher than the first quarter of 2023 recorded as 93.79%”, NBS explained.
The agricultural sector in the second quarter of 2023 grew by 1.50% (year-on-year) in real terms, an increase of 0.30% points from the corresponding period of 2022, and an increase of 2.40% points from the preceding quarter which recorded a growth rate of -0.90%. It grew on a quarter-on-quarter basis at 6.06%.
However, the sector contributed 23.01% to overall GDP in real terms in Q2 2023, lower than the contribution in the second quarter of 2022 and higher than the first quarter of 2023 which stood at 23.24% and 21.66% respectively.
The manufacturing sector’s real GDP growth was 2.20% (year-on-year), lower than the same quarter of 2022 and higher than the preceding quarter by 0.81% points and 0.59% points respectively.
The growth rate of the sector on a quarter-on-quarter basis stood at – 14.98%. The Real contribution to GDP in the 2023 second quarter was 8.62%, lower than the 8.65% recorded in the second quarter of 2022 and lower than the 10.13% recorded in the first quarter of 2023.
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 million but higher than Q2 2022 which stood at ₦17,285,882.91 million.
“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,” Statistician-general of the Federation and chief executive of National Bureau of Statistics (NBS), Adeniyi Adeniran, stated.
In nominal terms (current price), aggregate GDP stood at ₦52,103,927.13 million in Q2 2023, indicating a year-on-year nominal growth rate of 15.77 per cent. 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.