Nigeria’s GDP Growth Rate Increases, Hits 2.51% in Q2 2023

Nigeria’s GDP increased by 2.51% year-on-year in real terms during Q2 2023. This is higher by 0.2% compared to the 2.31% recorded in Q1 2023, but it’s 1.03% lower than the 3.54% recorded in the same period of 2022. This is according to the GDP report released by the National Bureau of Statistics. 

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In Q2 2023, the Services sector led the GDP growth, increasing by 4.42% and contributing 58.42% to the total GDP. Additionally, the agriculture sector improved its growth from 1.20% in Q2 2022 to 1.50%. The industry sector’s growth was -1.94%, which is better than the -2.30% in Q2 2022. Both agriculture and industry sectors had smaller contributions to the GDP in Q2 2023 compared to Q2 2022.

The oil sector’s real growth was -13.43% in Q2 2023, showing a decrease of 1.66% compared to the same quarter in 2022 (-11.77%). It also dropped by 9.22% compared to Q1 2023’s -4.21%. In Q2 2023, the oil sector’s quarter-on-quarter growth rate was -14.12%. Its contribution to the total real GDP in Q2 2023 decreased to 5.34%, down from both the corresponding period in 2022 and the previous quarter, where it was 6.33% and 6.21%, respectively. In Q2 2023, the country produced around 1.22 million barrels of oil per day on average. This was less than the 1.43 million barrels per day in the same period of 2022 by 0.22 million barrels. It was also lower than the production in Q1 2023, which was 1.51 million barrels per day, by 0.29 million barrels. 

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The non-oil sector’s real growth in Q2 2023 was 3.58%. This was 1.19% points lower than Q2 2022 but 0.81% points higher than Q1 2023. This sector’s growth was driven by Information and Communication (Telecommunication), Financial and Insurance (Financial Institutions), Trade, Agriculture (Crop production), Manufacturing (Food, Beverage & Tobacco), Construction, and Real Estate. Together, they boosted GDP. In Q2 2023, the non-oil sector contributed 94.66% to the GDP, up from 93.67% in Q2 2022 and 93.79% in Q1 2023.