Nigeria’s Economy Shows Positive Growth in Q3 2023, Driven by Services Sector

Official data from the National Bureau of Statistics reveals a positive trajectory in Nigeria’s economy for the third quarter of 2023.

The country’s Gross Domestic Product (GDP) experienced a year-on-year growth of 2.54%, surpassing the figures recorded in the same period last year (2.25%) and the previous quarter (2.51%).

The services sector emerged as a significant driver of this growth, registering an impressive 3.99% growth and contributing 52.70% to the overall GDP.

The agriculture sector also played a role, demonstrating a growth of 1.30%, slightly down from the previous year’s 1.34%.

Meanwhile, the industry sector showed improvement, posting a growth rate of 0.46%, a notable recovery from the -8.00% recorded in the third quarter of 2022.

In terms of GDP distribution, both agriculture and industry sectors contributed less to the overall GDP in Q3 2023 compared to the same period in 2022.

The total aggregate GDP for the third quarter of 2023 stood at N60,658,600.37 million in nominal terms, showcasing a 16.08% year-on-year nominal growth compared to Q3 2022.

The oil sector experienced a boost with an average daily production of 1.45 million barrels per day, surpassing the figures from both the same quarter in 2022 and the preceding quarter of 2023.

Despite a real growth rate of -0.85% (year-on-year) in Q3 2023, this indicates a significant improvement compared to the corresponding quarter in 2022 (-22.67%) and the second quarter of 2023 (-13.43%).

On a quarter-on-quarter basis, the oil sector exhibited a growth rate of 12.47% in Q3 2023, contributing 5.48% to the total real GDP.

This percentage is slightly lower than the figure recorded in the same period of 2022 but an improvement from the previous quarter.

In contrast, the non-oil sector experienced a 2.75% growth in real terms during Q3 2023, driven by various segments such as information and communication, financial and insurance, agriculture, trade, construction, and real estate.

This sector contributed 94.52% to the nation’s GDP, showcasing its resilience and significance in the economic landscape.

Source: Premium Times