Article summary
- Nigeria’s mining sector contracted by -3.96% in the first quarter of 2023, compared to the same quarter in 2022 and the fourth quarter of 2022.
- The contribution of mining and quarrying to the country’s real GDP in the first quarter of 2023 stood at 6.26%, lower than the rate recorded in the corresponding quarter of 2022.
- In contrast, the manufacturing sector saw nominal GDP growth of 17.85% in the first quarter of 2023, higher than the figure recorded in the corresponding period of 2022. However, real GDP growth in manufacturing was 1.61%, lower than the same quarter of 2022.
Nigeria’s mining sector experienced a contraction of -3.96% (year-on-year) in the first quarter of 2023, indicating a decline compared to the same period in 2022 and the fourth quarter of 2022.
The decline was by 21.93% points and 7.43% points respectively. In the manufacturing sector, real GDP growth in the first quarter of 2023 stood at 1.61%, which is lower than both the same quarter of 2022 and the preceding quarter by 4.28% points and 1.22%.
Mining
The report stated that in real terms, the Mining and Quarrying sector grew by –3.96% (year-on-year) in the first quarter of 2023.
- “Compared to the same quarter of 2022 and the fourth quarter of 2022, it was higher by 21.93% points and 7.43% points respectively.
- “Quarter-on-quarter, the growth rate recorded was 12.26% during the quarter. The contribution of Mining and Quarrying to Real GDP in the quarter under review stood at 6.26%, lower than the rate of 6.67% recorded in the corresponding quarter of 2022 and higher than the 4.71% recorded in the fourth quarter of 2022.”
They added that the Mining & Quarrying sector consists of Crude Petroleum and Natural Gas, Coal Mining, Metal ore and Quarrying, and other Minerals sub-activities.
- “This sector grew nominally by -3.52% (year-on-year) in Q1 2023. Metal Ores exhibited the highest growth rate of all the sub-activities at 78.92%, followed by Coal mining activity at 17.09%.
- “However, Crude Petroleum and Natural gas was the main contributor to the sector with a weight of 99.12% in Q1 2023.
- “Comparing Q1 2023’s rate of growth relative to Q1 2022 and Q4 2022 growth rates, there was a decline of 29.46% points and a fall of 2.45% points respectively.
- “The Mining & Quarrying sector contributed 6.73% to the overall GDP in the first quarter of 2023, lower than the contributions recorded in 2022 first quarter at 7.89% and higher than the previous quarter recorded at 4.51%.”
Manufacturing
For Manufacturing, Real GDP growth in the manufacturing sector in the first quarter of 2023 was 1.61% which was lower than the same quarter of 2022 and lower than the preceding quarter by 4.28% points and 1.22% points respectively.
- “The sector’s growth rate on a quarter-on-quarter basis stood at 1.63%. The Real contribution to GDP in the 2023 first quarter was 10.13%, lower than the 10.20% recorded in the first quarter of 2022 and higher than the 8.40% recorded in the fourth quarter of 2022.”
The Manufacturing sector is comprised of thirteen activities: Oil Refining; Cement; Food, Beverages, and Tobacco; Textile, Apparel, and Footwear; Wood and Wood Products; Pulp Paper and Paper products; Chemical and Pharmaceutical products; Non-metallic Products, Plastic and Rubber products; Electrical and Electronic; Basic Metal and Iron and Steel; Motor Vehicles and Assembly; and Other Manufacturing.
Nominal GDP growth of the Manufacturing sector in the first quarter of 2023 was recorded at 17.85% which is 6.13% points higher than the figure recorded in the corresponding period of 2022 (11.72%) and 8.99% points higher than the preceding quarter’s figure of 8.86%.
Meanwhile Quarter-on-quarter, growth of the sector was recorded at 5.05% during the quarter. The contribution of Manufacturing to Nominal GDP in the first quarter of 2023 was 15.70%, higher than the figure recorded in the corresponding period of 2022 at 15.06% and higher than the fourth quarter of 2022 at 13.49%.
What you should know
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.
Nigeria’s oil sector contributed only 6.21% to the country’s gross domestic product (GDP) in the first quarter of 2023.