The National Bureau of Statistics (NBS) reported on Wednesday that Nigeria’s Gross Domestic Product (GDP) growth rate slowed to 2.31 per cent (year-on-year) in real terms in the first quarter of 2023, down from 3.52 per cent in the previous quarter and 3.11 per cent in the first quarter of 2022.
The National Bureau of Statistics attributed the GDP decline to the negative effects of the cash shortage experienced during the quarter.
However, it was noted that the non-oil sector drove the economy, contributing 93.79 per cent to growth, while the energy sector contributed 6.21 per cent.
According to the GDP Report for Q1 2023 that was published on the NBS website, nominal GDP increased from N45.31 trillion in Q1 2022 to N51.24 trillion in Q1 2023.
This represented a nominal development of 13.07 per cent from the previous year. The real GDP was N17.75 trillion.
In the first quarter, average daily oil production increased to 1.51 million barrels per day (mbpd) from 1.34 mbpd in the previous quarter and 1.49 mbpd in the first quarter of 2022.
During the period under review, the services sector contributed 57.29 percent to the total GDP, agriculture 21.66 percent, and industries 21.05 percent.
Other industries included manufacturing (10.13%), trade (12.28%), and finance and insurance (5.35%).
Additionally, the information and communication sector contributed 17.47% to GDP in the first quarter.
The National Bureau of Statistics stated, “Although the growth of the industry sector improved to 0.31 percent from -6.81 percent in the first quarter of 2022, agriculture and the industry sectors contributed less to the aggregate GDP in the quarter under review compared to the first quarter of 2022.
“The real growth of the oil sector was -4.21 percent (year-over-year) in the first quarter of 2023, representing an increase of 21.83 percentage points over the rate documented in the same quarter of 2022 (-26.04 percent).
“Growth increased by 9.18 percentage points relative to Q4 2022, when it was -13.38 percentage points.” In the first quarter of 2023, the hydrocarbon industry posted a quarterly growth rate of 20.68 percent.
“The oil sector contributed 6.21 percent to the total real GDP in the first quarter of 2023, a decrease from 6.63 percent in the same period of 2022 and an increase from 4.34 percent in the previous quarter.”