The National Bureau of Statistics (NBS), on Thursday, February 22, reported that Nigeria’s Gross Domestic Product (GDP) experienced a real growth of 3.46% in the fourth quarter of 2023 (Q4 2023). The growth, outlined in the “Q4 2023 GDP Report,” was slightly lower than the 3.52% recorded in 2022 but higher than the third-quarter growth of 2.54%.
NBS said: “Nigeria’s Gross Domestic Product (GDP) grew by 3.46% (year on year) in real terms in the fourth quarter of 2023.”
The report highlighted that the service sector primarily drove this growth, with a rate of 3.98%, contributing 56.55% to the overall GDP. The agriculture sector saw a growth of 2.10%, an improvement from the 2.05% recorded in Q4 2022.
The industry sector also experienced growth at a rate of 3.86%, significantly higher than the 0.94% recorded in Q4 2022. In terms of GDP share, both the industry and services sectors contributed more to the aggregate GDP in Q4 2023 compared to the same quarter in 2022. On an annual basis, the GDP grew by 2.74% in 2023, compared to 3.10% in 2022.
In the fourth quarter of 2023, the aggregate nominal GDP stood at N65,908,258.59 million, exhibiting a year-on-year nominal growth of 16.12% compared to the same period in 2022.
For clarity, the NBS categorized the Nigerian economy into the oil and non-oil sectors.
On the oil sector, “The nation in the fourth quarter of 2023 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.
NBS also said the real growth of the oil sector was 12.11% (year on year) in Q42023, indicating an increase of 25.50% points relative to the rate recorded in the corresponding quarter of 2022(-13.38%). Growth also increased by 12.96% points when compared to Q3 2023 which was –0.85%. On a quarter-on-quarter basis, the oil sector recorded a growth rate of 3.81% in Q4 2023. On an annual basis, the oil sector growth stood at -2.22%in 2023 compared to -19.22% in 2022.
NBS said the oil sector contributed 4.70% to the total real GDP in Q42023, up from the figure recorded in the corresponding period of 2022 and down from the preceding quarter, where it contributed 4.34% and 5.48% respectively.
The report added that “The non-oil sector grew by 3.07% in real terms during the reference quarter (Q42023).
“This rate was owner by 1.37%points compared to the rate recorded in the same quarter of 2022 and 0.32% points higher than the third quarter of 2023.
“This sector was driven in the fourth quarter of 2023 mainy by Financial and Insurance (Financial Institutions); Information and Communication (Telecommunication); Agriculture (Crop production); Trade; Construction; Manufacturing (Food, Beverage, and Tobacco) and Real Estate, accounting for positive GDP growth.
“On an annual basis, the non-oil sector growth in 2023 stood at 3.04% relative to 4.84% recorded in 2022.
“In real terms, the non-oil sector contributed 95.30% to the nation’s GDP in the fourth quarter of 2023, lower than the share recorded in the fourth quarter of 2022which was 95.66% and higher than the third quarter of 2023 recorded as 94.52%”
