Nigeria records 2.74% GDP growth in 2023

Nigeria’s  Gross Domestic Product (GDP) grew by 2.74 percent in 2023, representing a  0.36 percentage point year-on-year (YoY)  decline  from 3.1 percent in 2022.

The National Bureau of Statistics, NBS, disclosed this today in its  Nigeria GDP Report for Q4’23.

It said: “On an annual basis, GDP grew by 2.74 percent in 2023 relative to 3.1 percent in 2022.”

Analysis of quarterly GDP growth rate in the  report showed that GDP stood at 2.31 percent in the first quarter of 2023 (Q1’23) and grew by 2.51 percent in Q2’23.

In Q3’23 GDP growth was 2.54 percent  and 3.46 percent in the fourth quarter of 2023 (Q4’23) resulting in an annual growth of 2.74 percent.

NBS also noted that the oil sector growth stood at -2.22 percent in 2023 when compared with -19.22 percent growth in 2022.

The non oil sector grew by 3.04 percent in 2023 representing a 1.8 percentage points YoY decline when compared to 4.84 percent growth in 2022.

However, GDP grew by 0.92 percent to 3.46 percent in Q4’23.

According to the bureau the performance of the GDP in Q4’23 was driven mainly by the Services sector with a growth of 3.98 percent contributing 56.5 percent to the aggregate GDP.

The bureau stated:”Nigeria’s GDP grew by 3.46 per cent(YoY) in real terms in Q4’23. “This growth rate is lower than the 3.52 percent recorded in Q4’22 and higher than Q3’23 growth of 2.54 percent.

“The Performance Of the GDP in the fourth quarter of 2023 was driven mainly by the services sector, which recorded a growth of 3.98 percent and contributed 56.5 percent to the aggregate GDP.

“The agriculture sector grew by 2.1 percent,from the growth of 2.05 percent recorded in the fourth quarter of 2022.

“The growth of the industry sector was 3.86 percent, an improvement from -0.94 percent recorded in Q4’22.

“In terms of share of the GDP, industry, and the services sectors contributed more to the aggregate GDP in the fourth quarter of 2023 compared to Q4’22.”

On the oil sector contribution to GDP, NBS said:”The nation in Q4’23 recorded an average daily oil production of 1.55 million barrels per day (mbpd), higher than the daily average production of 1.34mbpd recorded in the same quarter of 2022 by 0.21mbpd and higher than the third quarter of 2023 production volume of 1.45mbpd by 0.10mbpd.

“The real growth of the oil sector was 12.1 percent (YoY) in Q4’23, indicating an increase of 25.5 percentage points relative totherate recorded in the corresponding quarter of 2022(-13.38 percent).

“Growth also increased by 12.96 percentage points when compared to Q3’23 which was –0.85 percent .

“On a quarter-on-quarter, QoQ,

basis, the oil sector recorded a growth rate of 3.81 percent in Q4’23.

“The Oil sector contributed 4.7 percent to the total real GDP in Q4’23, up from the figure recorded in the corresponding period of 2022 and down

from the preceding quarter, where it contributed 4.34 percent and 5.48 percent respectively.”

On non-oil sector contribution to GDP, NBS said:”The non-oil sector grew by 3.07 percent in real terms during the reference quarter (Q4’23).

“This rate was lower by 1.37 percentage points compared to the rate recorded in the same quarter of 2022 and 0.32 percentage points higher than Q3’23.

“In real terms, the non-oil sector contributed 95.3 percent to the nation’s GDP in Q4’23, lower than the share recorded in Q4’22 which was 95.6 percent and higher than Q3’23 recorded as 94.52 percent.”