Nigeria’s economy witnessed a modest increase in the third quarter of 2023, with the Gross Domestic Product (GDP) growing by 2.54 percent year-on-year. The National Bureau of Statistics (NBS) released these figures, indicating a slight improvement over the previous quarters.
The service industry emerged as a significant growth driver in this period, recording a 3.99 percent increase and contributing over half to the total GDP. Although the agriculture sector showed a growth of 1.30 percent, it marked a decrease from the previous year’s 1.34 percent.
The industry sector saw a growth of 0.46 percent, recovering from the previous year’s 8.00 percent decline. However, both agriculture and industry sectors contributed less to the GDP compared to 2022.
In nominal terms, the aggregate GDP stood at N60.66 trillion, surpassing the N52.26 trillion recorded in the same quarter of the previous year. This represents a 16.08 percent nominal growth year-on-year.
Oil production also showed signs of recovery, with daily output increasing to 1.45 million barrels per day, up from 1.20 million barrels in 2022. This improvement reduced the contraction in the oil sector, which experienced a real growth of -0.85 percent in Q3 2023.
The non-oil sector, however, displayed stronger performance, growing by 2.75 percent in real terms. Sectors like telecommunications, financial institutions, crop production, trade, construction, and real estate all contributed to this growth. The non-oil sector’s contribution to the GDP was substantial, accounting for 94.52 percent in Q3 2023.
Despite these gains, Nigeria’s economic growth remains sluggish. The International Monetary Fund (IMF) recently revised its growth projection for Nigeria to 2.9 percent for 2023, citing weaker oil and gas production and high inflation as contributing factors.
Experts like Dr. Alias Aliyu and Marcel Okeke have raised concerns over the economy’s trajectory. They emphasize the need for a balanced approach to economic development, focusing not just on the service sector but also on addressing the challenges in agriculture and industry.
