Nigeria’s mining sector suffered a decline in economic productivity, causing a -21.31% growth decline as of Q3 2022.
This was disclosed in the Q3 GDP report released earlier today by the National Bureau of Statistics (NBS).
The contribution of the mining and quarrying sector to the GDP dropped to 5.90% in Q3 2022. This is lower by 10.75% points and 10.21% points, respectively, compared to the figures for Q3 2021 and Q2 2022.
“Quarter on quarter, the growth rate recorded was – 0.63% during the quarter. The contribution of Mining and Quarrying to Real GDP in the quarter under review stood at 5.90%, lower than the rate of 7.66% recorded in the corresponding quarter of 2021 and lower than the 6.51% recorded in the second quarter of 2022,” the report said.
Led by Oil and gas: The Mining & Quarrying sector consists of Crude Petroleum and Natural Gas, Coal Mining, Metal ore and Quarrying and other Minerals sub-activities. NBS stated that the sector grew nominally by 34.26% (year-on-year) in Q3 2022. And the nominal growth was led by the oil and gas sub-sector.
“Quarrying and Other Minerals exhibited the highest growth rate of all the sub-activities at 62.52%, followed by Metal Ore activity at 51.47%.
“However, Crude Petroleum and Natural gas was the main contributor to the sector with a weight of 87.52% in Q3 2022. Comparing Q3 2022’s rate of growth relative to Q3 2021 and Q2 2022 growth rates, there was a rise of 38.91% points and a fall of 15.49% points respectively.”
In case you missed it: Nigeria’s gross domestic product (GDP) grew by 2.25% year-on-year in Q3 2022, marking the slowest growth since the Covid-19 pandemic.