Oil production climbed to 1.5m barrels, GDP dropped in Q1 2023 – NBS

Nigeria’s oil production of crude oil has increased to an average of 1.51m barrels per day in the first quarter of 2023, the National Bureau of Statistics (NBS) has disclosed. The report titled Nigeria Gross Domestic Product Report Q1 2023 disclosed that oil production in the country moved above 1.m barrel per day for the […]

Nigeria’s oil production of crude oil has increased to an average of 1.51m barrels per day in the first quarter of 2023, the National Bureau of Statistics (NBS) has disclosed.

The report titled Nigeria Gross Domestic Product Report Q1 2023 disclosed that oil production in the country moved above 1.m barrel per day for the first since the third quarter of 2021.

The report also indicated that Nigeria’s Gross Domestic Product grew in Real terms by 2.31 per cent during the period.

While in nominal terms, it showed that the aggregate GDP stood at N51.2trn which is higher than the N45.3trn recorded in the fourth quarter of 2022.

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“Overview of GDP in Quarter One 2023 Nigeria’s Gross Domestic Product (GDP) grew by 2.31 per cent (year-on-year) in real terms in the first quarter of 2023. This growth rate declined from 3.11 per cent recorded in the first quarter of 2022, and 3.52 per cent in the fourth quarter of 2022.”

The NBS attributed the reduction in growth to the adverse effects of the cash crunch experienced during the quarter.

It said 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 per cent and contributed 57.29 per cent to the aggregate GDP.

Non-oil sector contributed 93.79 per cent, oil sector 6.21 per cent.

The report stated that the non-oil sector continues to contribute the highest share to Nigeria’s GDP, contributing 93.79 per cent while the oil secor contributed 6.21 per cent.

Similarly, the non-oil sector grew by 2.77 per cent in real terms during the period which was lower than the by 3.30 per cent points compared to the rate recorded in the same quarter of 2022 and 1.67 per cent points lower than the fourth quarter of 2022.

It explained that the sector was driven in the first quarter of 2023 mainly by information and communication (telecommunication); financial and insurance (financial institutions); trade; manufacturing (food, beverage & tobacco); construction; and transportation and storage (road transport), accounting for positive GDP growth.

On sectoral growth, the agriculture sector grew by -0.90 per cent, lower than the growth of 3.16 per cent recorded in the first quarter of 2022.

“Although the growth of the industry sector improved to 0.31 per cent relative to -6.81 percent 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.”

“The real growth of the oil sector was -4.21 per cent (year-on-year) in Q1 2023, indicating an increase of 21.83 percent points relative to the rate recorded in the corresponding quarter of 2022 (-26.04 per cent). Growth increased by 9.18 per cent points when compared to Q4 2022 which was –13.38 percent. On a quarter-on-quarter basis, the oil sector recorded a growth rate of 20.68 percent in Q1 2023. The Oil sector contributed 6.21 per cent to the total real GDP in Q1 2023, down from the figure recorded in the corresponding period of 2022 and up from the preceding quarter, where it contributed 6.63 per cent and 4.34 per cent respectively.”