Nigeria’s oil and gas sector contributed a mere 5.34% to the country’s Gross Domestic Product (GDP). down from the figure recorded in the corresponding period of 2022 and down from the preceding quarter, where it contributed 6.33% and 6.21% respectively.
This is according to the latest GDP report released by the National Bureau of Statistics (NBS) on Friday, August 25.
According to the NBS report, in the second quarter of 2023, Nigeria recorded an average daily oil production of 1.22 million barrels per day (m/bpd), lower than the daily average production of 1.43 m/bpd recorded in the same quarter of 2022 by 0.22 m/bpd and lower than the first quarter of 2023 production volume of 1.51 m/bpd by 0.29mbpd.
The oil sector is contracting
The report stated further that in Q2/2023, real growth of the oil sector was –13.43% (year-on-year), indicating a decrease of 1.66% points relative to the rate recorded in the corresponding quarter of 2022 (-11.77%).
Growth also decreased by 9.22% points when compared to Q1 2023 which was –4.21%.
Meanwhile, on a quarter-on-quarter basis, the oil sector recorded a growth rate of -14.12% in Q2 2023.
Note that Nigeria’s Gross Domestic Product (GDP) grew by 2.51% (year-on-year) in real terms in Q2 2023.
This growth rate is lower than the 3.54% recorded in the second quarter of 2022 and may be attributed to the challenging economic conditions being experienced.
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The NBS report stated further that the Mining and 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 -7.11% (year-on-year) in Q2 2023.
Metal Ores exhibited the highest growth rate of all the sub-activities at 186.40%, followed by quarrying and other minerals activity at 60.83%.
Crude Petroleum and Natural gas was the main contributor to the sector with a weight of 85.80% in Q2 2023.
Comparing Q2 2023’s rate of growth relative to Q2 2022 and Q1 2023 growth rates, there was a decline of 56.86% points and a fall of 3.59% points respectively.
The Mining and Quarrying sector contributed 6.58% to the overall GDP in the second quarter of 2023, lower than the contributions recorded in 2022 second quarter at 8.20% and lower than the previous quarter at 6.73%.
In real terms, the Mining and Quarrying sector grew by –12.16% (year-on-year) in the second quarter of 2023. Compared to the same quarter of 2022 and the first quarter of 2023, it was lower by 1.07% points and lower by 8.20% points respectively.
Electricity, steam, gas, and air conditioning supply
According to the NBS report, in real terms, the sector grew by 6.10% in Q2 2023, an increase from the growth rate of -11.48% recorded in the same quarter of 2022.
When compared to the immediate past quarter, there was a decrease of 3.43% points from 9.53% recorded.
On a quarter-on-quarter, the sector grew at a rate of 251.72%. The contribution of this sector to real GDP in the second quarter of 2023 was 0.71%, higher than the 0.69% recorded in Q2 2022.
