The National Bureau of Statistics (NBS) reported on Wednesday that the nation’s Gross Domestic Product (GDP) grew by 2.31% (year-on-year) in real terms in the first quarter of 2023.
The Bureau, which is Nigeria’s statistical system coordinating agency, in its just published ‘Nigeria Gross Domestic Product Q1 2023’, disclosed that the Q1 2023 growth rate recorded by the economy was lower than the 3.11% recorded in the first quarter of 2022, and 3.52% in the fourth quarter of 2022.
The statistics agency attributed the slowdown in GDP growth rate primarily to the adverse effects of the cash crunch experienced during the quarter occasioned by the implementation of the Central Bank of Nigeria’s (CBN’s) Naira redesign policy.
According to the report, the performance of the GDP in the first quarter of 2023 was driven mainly by the Services sector, which recorded a growth of 4.35% and contributed 57.29% to the aggregate GDP.
However, the NBS clarified that the agriculture sector grew by -0.90%, lower than the growth of 3.16% recorded in the first quarter of 2022.
It stated: “Although the growth of the industry sector improved to 0.31% relative to – 6.81% recorded 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.”
An analysis of the GDP report in the quarter under review reflected that the oil sector contributed only 6.21% to the country’s gross domestic product (GDP), down from the 6.63% it contributed in Q1, 2022, but up from 4.34% it contributed in the preceding quarter (Q4, 2022).
The report showed that the real growth of the oil sector was –4.21% (year-on-year) in Q1 2023, representing an increase of 21.83% points relative to the -26.04% growth rate it recorded in the corresponding quarter of 2022
The sector’s growth increased by 9.18% points when compared to Q4 2022 which was –13.38% and on a quarter-on-quarter basis, it recorded a growth rate of 20.68% in Q1 2023.
