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From Isaac Anumihe, Abuja
National Bureau of Statistics (NBS) yesterday, said that the Gross Domestic Product (GDP) growth rate in real terms (Constant price) grew by 2.51 per cent in the second quarter (Q2) of 2023 on a year-on-year basis.
This is 1.03 per cent percentage points lower than the rate recorded in Q2 2022 (3.54 per cent), but higher by 0.20 per cent percentage points relative to 2.31 per cent recorded in the first quarter (Q1) of 2023.
It also reflects a higher growth rate when compared to the preceding quarter (Q1 2023).
The major driver of the economy, it noted, is the services sector which recorded a growth of 4.42 per cent and contributed 58.42 per cent to the aggregate GDP.
Similarly, on a quarter-on-quarter, the real GDP growth decreased by 0.17 per cent in Q2 2023, reflecting a low production level than the preceding quarter of Q1 2023.
The economic activity in real terms for Q2 2023, according to NBS, stood at ₦17,719,335.38 million, which is lower than the rates recorded in Q1 2023 ₦17,750,060.97 million but higher than Q2 2022 which stood at ₦17,285,882.91 million.
This highlighted the shortfall in production level in the quarter under review when compared with the previous quarters of Q1 2023 but higher than the corresponding quarter of Q2 2022.
“In nominal terms (current price), aggregate GDP stood at ₦52,103,927.13 million in Q2 2023, indicating a year-on-year nominal growth rate of 15.77 per cent. This is higher than the value of ₦45,004,520.89 million in Q2 2022 and ₦51,242,151.21 million in the preceding quarter.
“The major contributing economic activities in real terms in the quarter under review (i.e., Q2 2023) are crop production 20.66 per cent, trade 16.80 per cent, telecommunication 16.06 per cent, crude petroleum 5.34 per cent, and real estate 5.29 per cent.
“On a broad classification of the economic activities into agriculture, industry, and services sectors based on growth, the agricultural sector grew by 1.50 per cent in Q2 2023 in real terms, which is higher than Q2 2022 which recorded 1.20 per cent. The industry grew by -1.94 per cent in Q2 2023, which shows an improvement when compared to the figure recorded in Q2 2022 which was -2.30 per cent. While the services sector grew by 4.42 per cent but less than 6.70 per cent recorded in Q2 2022.
“Analyses of the contributions of the broad economic sectors in the period under review, agriculture contributed 23.01 per cent, industry 18.56 per cent, and services 58.42 per cent. Agriculture and industry contributions were less than their contributions in Q2 2022 by 0.23 per cent and 0.84 per cent percentage points, while the services sector had the highest contribution to the GDP in Q2 2023, surpassing the Service sector’s contribution in the corresponding quarter of 2022 by 1.07 per cent percentage points.
“Further disaggregation of the economic activities into oil and non-oil sectors. The oil GDP grew by -13.43 per cent in Q2 2023, which shows a decline when compared to -11.77 per cent in Q2 2022 and the previous quarter of Q1 2023 which recorded -4.21 per cent. Similarly, the oil sector accounted for 5.34 per cent during the quarter under review.
However, the second quarter of 2023 recorded an average daily oil production of 1.22 million barrels per day (mbpd), lower than the daily average production of 1.43 mbpd and 1.51 mbpd recorded in the same quarter of 2022 and the Q12023 by 0.22 mbpd and 0.29 mbpd, respectively.
“The non-oil sector contributed 94.66 per cent to the GDP in Q2 of 2023 in real terms. This shows an increase on a year-on-year basis when compared to the same period in Q2 2022 which stood at 93.67 per cent. This is also higher than Q1 2023 which recorded 93.79 per cent.
“The economic performance of the non-oil sector in Q2 2023 is attributed to the growth recorded in some economic activities, like crop production in the agriculture sector, trade, telecommunication, real estate in the services sector, and crude petroleum in the mining and quarrying sector” the bureau, said. ENDS
