FRI, AUGUST 25 2023-theGBJournal |Nigeria’s economy maintained its growth momentum in Q2-23, with real GDP growing by 2.51% y/y (Q1-23: +2.31% y/y), according to latest data published today by the National Bureau of Statistics (NBS).
The growth outturn is 60bps lower than Cordros’ estimate (+3.11% y/y), primarily due to the higher-than-expected oil sector’s contraction.
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%.
For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors.
Based on the GDP breakdown provided, the oil sector’s performance continued to experience contraction, declining by 13.43% y/y (Q1-23: -4.21% y/y).
According to the NBS, crude oil production averaged 1.22mb/d in Q2-23, 19.2% y/y lower than in Q1-23 (1.51mb/d). As a result, the oil sector contributed 5.34% to the total GDP (Q1-23: 6.21%) during the review period.
Conversely, the non-oil sector sustained its positive growth trajectory, rising by 3.58% y/y in Q2-23 (Q1-23: +2.77% y/y) as the negative impact of the cash scarcity witnessed in Q1-23 subsided. As a result, the non-oil sector contributed 94.66% to the total GDP (vs 93.79% in Q1-23).
Breaking down the GDP on a sectoral basis: Agriculture grew by 1.50% y/y (Q1-23: -0.90% y/y); Industries contracted by 1.94% y/y compared to a growth of 0.31% y/y in Q1-23; while Services grew by 4.42% y/y (Q1-23: +4.35% y/y).
In terms of contribution, Services, Agriculture, and Industries, respectively, accounted for 58.42%, 23.01%, and 18.56% of overall output growth.
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