Growth momentum eases as Nigeria’s GDP prints 2.31% in first quarter 2023



Uba Group

Nigeria recorded a growth of 2.31 percent in gross domestic product in first quarter of 2023, representing a slower increase compared to the preceding quarter which stood at 3.52 percent.

A cursory examination of the breakdown of GDP figures showed that the oil sector declined at a slower pace, contracting by 4.21 percent year on year (Q4-22: -13.38% y/y).

According to the NBS, crude oil production averaged 1.51 mb/d in Q1-23, 1.3% y/y higher than Q1-22 (1.49 mb/d).

As a result, the oil sector contributed 6.21 percent to the total GDP (Q4-22: 4.34%) during the review period.

Elsewhere, the non-oil sector maintained its positive growth path but grew moderately by 2.77 percent y/y in Q1-23 (Q4-22: +4.44% y/y) – the lowest print since Q1-21 (+0.79% y/y).

The non-oil sector contributed 93.79 percent to total GDP (vs 93.37% and 95.66% in Q1-22 and Q4-22, respectively).

Analysing the GDP on a sectoral basis, Agriculture contracted by 0.90 percent y/y (Q4-22: +2.05% y/y); Industries rose by 0.31 percent y/y compared to a decline of 0.94 percent y/y in Q4-22; while Services grew by 4.35 percent y/y (Q4-22: +5.69% y/y).

In terms of contribution, Services, Agriculture, and Industries, respectively, accounted for 57.29 percent, 21.66 percent, and 21.05 percent of overall output growth.