Article summary
- Nigeria’s oil sector contributed only 6.21% to real GDP in the first quarter of 2023.
- Nigeria’s Gross Domestic Product (GDP) grew by 2.31% (year-on-year) in real terms in the first quarter of 2023.
- The GDP in Q1 2023 was driven mainly by the services sector.
Nigeria’s oil sector contributed only 6.21% to the country’s gross domestic product (GDP) in the first quarter of 2023.
This was stated in the GDP report for Q1 2023 by the National Bureau of Statistics (NBS). According to the report, the oil sector contributed 6.21% to the total real GDP in Q1 2023, down from the figure recorded in the corresponding period of 2022 and up from the preceding quarter, where it contributed 6.63% and 4.34% respectively.
In the report, it was stated that the real growth of the oil sector was –4.21% (year-on-year) in Q1 2023, indicating an increase of 21.83% points relative to the rate recorded in the corresponding quarter of 2022 (-26.04%).
Meanwhile, growth increased by 9.18% points when compared to Q4 2022 which was –13.38%. On a quarter-on-quarter basis, the oil sector recorded a growth rate of 20.68% in Q1 2023.
Oil production rates
The GDP report noted that in Q1 2023, Nigeria recorded an average daily oil production of 1.51 million barrels per day (m/bpd), higher than the daily average production of 1.49 m/bpd recorded in the same quarter of 2022 by 0.01 m/bpd and higher than the fourth quarter of 2022 production volume of 1.34 m/bpd by 0.17 m/bpd.
Other energy forms
The GDP report also stated that the Electricity, Gas, Steam, and Air conditioning supply sector recorded a year-on-year growth of 18.19% in the first quarter of 2023. This was 20.60% points higher than the -2.41% growth rate recorded in the corresponding quarter of 2022, and 4.22% points lower than the growth rate of 22.41% recorded in the quarter before.
Meanwhile, quarter–on–quarter, the sector recorded a growth rate of -67.07% in Q1 2023. The contribution of Electricity, Gas, Steam, and Air Conditioning Supply to nominal GDP in the first quarter of 2023 was 0.40%, which is higher than the contribution made in the corresponding quarter of 2022 at 0.38% and lower than its contribution of 1.09% in the quarter before.
In real terms, however, the Electricity, Gas, Steam, and Air conditioning supply sector grew by 9.53% in Q1 2023, an increase from the growth rate of -11.20% recorded in the corresponding quarter of 2022. When compared to the immediate past quarter, there was a decrease of 5.69% points from 15.22% recorded.
On a quarter-on-quarter basis, the sector grew at a rate of -67.63%. The contribution of this sector to real GDP in the first quarter of 2023 was 0.20%, higher than the 0.19% recorded in Q1 2022.
What you should know
According to the report, Nigeria’s Gross Domestic Product (GDP) grew by 2.31% (year-on-year) in real terms in the first quarter of 2023. This growth rate declined from 3.11% recorded in the first quarter of 2022, and 3.52% in the fourth quarter of 2022.
The reduction in growth is attributed to the adverse effects of the cash crunch experienced during the quarter. It is important to note that 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% and contributed 57.29% to the aggregate GDP.
