Nigeria’s GDP growth slows to 2.31% in Q1 2023 amid cash crunch
Nigeria’s Gross Domestic Product slowed to 2.31 per cent in real terms during the first quarter of 2023, the National Bureau of Statistics (NBS) has stated.
The NBS in a report titled Nigeria Gross Domestic Product Report Q1 2023, showed that aggregate GDP during the period stood at N51.2tr, which is higher than the N45.3tr recorded in the fourth quarter of 2022.
The NBS said the reduction in growth is attributed to the adverse effects of the cash crunch experienced during the quarter.
“Overview of GDP in Quarter One 2023 Nigeria’s Gross Domestic Product (GDP) grew by 2.31 per cent (year-onyear) in real terms in the first quarter of 2023. This growth rate declined from 3.11 per cent recorded in the first quarter of 2022, and 3.52 per cent in the fourth quarter of 2022.”
It said the performance of the GDP in the first quarter of 2023 was driven mainly by the Services sector, which recorded a growth of 4.35 per cent and contributed 57.29 per cent to the aggregate GDP.
The report also showed that Nigeria’s production of crude oil increased to an average 1.51m barrels per day, in the first quarter of 2023.
This means that oil production moved above 1.5m barrel per day for the first since the third quarter of 2021.
Non-oil sector contributed 93.79%, oil sector 6.21%
The report stated that the non-oil sector continues to contribute the highest share to Nigeria’s GDP, contributing 93.79 per cent while the oil sector contributed 6.21 per cent.
Similarly, the non-oil sector grew by 2.77 per cent in real terms during the period which was lower than the by 3.30 per cent points compared to the rate recorded in the same quarter of 2022 and 1.67 per cent points lower than the fourth quarter of 2022.
It explained that the sector was driven in the first quarter of 2023 mainly by information and communication (telecommunication); financial and insurance (financial institutions); trade; manufacturing (food, beverage & tobacco); construction; and transportation and storage (road transport), accounting for positive GDP growth.
On sectoral growth, the agriculture sector grew by -0.90 per cent, lower than the growth of 3.16 per cent recorded in the first quarter of 2022.
“Although the growth of the industry sector improved to 0.31 percent relative to -6.81 percent recorded in the first quarter of 2022, agriculture and the industry sectors contributed less to the aggregate GDP in the quarter under review compared to the first quarter of 2022.”
“The real growth of the oil sector was -4.21 per cent (yearon-year) in Q1 2023, indicating an increase of 21.83 per cent points relative to the rate recorded in the corresponding quarter of 2022 (-26.04 per cent).