Nigeria’s oil sector contributed 5.66% to the country’s total real gross domestic product (GDP) in Q3 2022.
This is according to the Nigerian GDP report for Q3/2022, released Thursday, November 24 by the National Bureau of Statistics (NBS).
The 5.66% recorded in Q3/2022 is down from the figures recorded in the corresponding period of 2021 and the preceding quarter, where it contributed 7.49% and 6.33% respectively.
Crude oil production rates: According to the GDP report, Nigeria recorded an average daily oil production of 1.20 million barrels per day (mbpd) in Q3/2022. This is lower than the daily average production of 1.57 mbpd recorded in the same quarter of 2021 by 0.37 mbpd and lower than the Q2/2022 production volume of 1.43 mbpd by 0.24 mbpd.
The declining growth rate in the oil industry: The real growth of the oil industry was –22.67% year-on-year in Q3 2022 indicating a decrease of 11.94% points relative to the rate recorded in the corresponding quarter of 2021. Growth also decreased by 10.91% points when compared to Q2 2022 which was –11.77%. Quarter-on-quarter, the oil industry recorded a growth rate of -1.80% in Q3 2022.
Probable cause: Looking at the corresponding period in 2021, Nigeria was producing up to 1.5 million barrels per day of crude oil. However, the country was battling crude oil theft as of Q3/2022. The Nigerian National Petroleum Company (NNPC) Limited has made it clear that they have launched an offensive against perpetrators and this aided increased production as of October 2022, higher than in previous months of September and August 2022.
Nigeria’s energy sub-sectors: According to the GDP report, this sector recorded a year-on-year growth of -3.07% in Q3/2022.
The report says the contribution of electricity, gas, steam and air conditioning supply to nominal GDP in Q3/2022 was 0.72%, lower than the contribution made in the corresponding quarter of 2021 at 0.86% and lower than its contribution of 1.39% in Q2/2022.
In real terms, the sub-sector grew by -3.56% in Q3/2022, a decline from the growth rate of 14.36% recorded in the same quarter of 2021. When compared to the immediate past quarter, there was an increase of 7.92% points from -11.48% recorded.
In case you missed it: Nairametrics reported that its research arm, Nairalytics, found that power supply across the country dropped to 6.52% between September and October 2022.
In July 2022, the power supply was at 86,222 megawatts per hour (MW/h). In August 2022, the power supply was at 93,184 MW/h. In September 2022, the power supply was at 94,557 MW/h.
