Gross Domestic Product (GDP) as reported by The National Bureau of Statistics (NBS) slows down the growth rate experienced, reaching 2.51% year-on-year during the second quarter of 2023, in contrast to the 3.54% achieved in the same period of 2022.
Nigeria’s Economic Snapshot: Q2 2023 Shows Slight Uptick in Year-on-Year GDP
Despite this, the figure represented a slight uptick of 0.20% when compared to the 2.31% recorded in the preceding quarter of 2023. The NBS released the Second Quarter Gross Domestic Product Report, highlighting the services sector as the primary driver of the economy, boasting a 4.42% growth and contributing 58.42% to the overall Gross Domestic Product.
Looking at a quarter-on-quarter perspective of Nigeria‘s growth, the real Gross Domestic Product dropped by 0.17% in Q2 2023, signaling reduced economic activity levels compared to the previous quarter. The NBS estimated the real Gross Domestic Product to be N17.72 trillion in Q2, slightly lower than the N17.75 trillion in Q1 but surpassing the N17.28 trillion recorded in Q2 of 2022. The NBS noted that this highlighted a production shortfall in the reviewed quarter compared to Q1 2023, yet remained higher than Q2 2022.
Non-Oil Sector Takes the Lead as Nominal Gross Domestic Product Grows
Nominal Gross Domestic Product (current price) stood at N52.10 trillion in Q2, exhibiting a year-on-year nominal growth rate of 15.77%. This figure outperformed the N45 trillion from Q2 2022 and the N51.24 trillion in the previous quarter. Oil production saw a decline, with average daily output decreasing to 1.22 million barrels per day (mbpd) in Q2, down from the 1.43 mbpd in the corresponding quarter of 2022 and lower than the 1.51 mbpd in Q1 2023.
While the oil sector’s contribution to Gross Domestic Product diminished to 5.34%, compared to 6.21% in the preceding quarter and 6.33% in Q2 2022, the non-oil sector took a larger share, constituting 94.66% of the economy in Q2. This was an increase from the 93.79% in the previous quarter and the 93.67% in Q2 2022. The agricultural sector accounted for 23.01% of the Gross Domestic Product, surpassing the 21.66% in Q1 but slightly below the 23.24% in the same period of the previous year.
Industries and Manufacturing Sector Impact on Nigeria’s Q2 2023 GDP
Industries contributed 18.56% to the growth, with the manufacturing sector contributing 8.62% to the Gross Domestic Product in Q2. This was a decrease from the 10.13% in the preceding quarter and the 8.65% in Q2 2022. Additionally, trade made up 16.80% of the Gross Domestic Product in Q2, higher than the 15.97% in Q1 but slightly lower than the 16.81% recorded in the previous year.
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