Nigeria’s GDP Growth Slows to 2.31%, Driven by Non-oil Sector in Q1

James Emejo |  This Day

Nigeria’s Gross Domestic Product (GDP) growth rate slowed to 2.31 per cent (year-on-year) in real terms in the first quarter of the year (Q1, 2023) compared to 3.52 per cent recorded in the preceding quarter, and 3.11 per cent in Q1 2022, the National Bureau of Statistics (NBS) disclosed yesterday.

 The NBS attributed the decline in GDP to the adverse effects of the cash crunch experienced during the quarter.

However, it pointed out that the economy was largely driven by the non-oil sector which contributed 93.79 per cent to growth while the oil sector contributed 6.21 per cent.

According to the GDP Report for Q1 2023 which was posted on the NBS website, aggregate GDP stood at N51.24 trillion year-on-year in nominal terms compared to N45.31 trillion in Q1 2022.

This represented a year-on-year nominal growth of 13.07 per cent. Real GDP stood at N17.75 trillion.

 In Q1, average daily oil production increased to 1.51 million barrels per day (mbpd), higher than 1.34 mbpd in the preceding quarter by 0.17mbpd and 1.49mbpd recorded in Q1 2022.

The services sector contributed 57.29 per cent to the aggregate GDP, agriculture 21.66 per cent, and industries 21.05 per cent in the period under review.

Others included manufacturing 10.13 per cent, trade 12.28 per cent, and finance and insurance 5.35 per cent.

 Furthermore, information and communication sector contributed 17.47 per cent to GDP in Q1.

The NBS stated, “Although the growth of the industry sector improved to 0.31 per cent relative to -6.81 per cent 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 per cent points relative to the rate recorded in the corresponding quarter of 2022 (-26.04per cent).

“Growth increased by 9.18 per cent points when compared to Q4 2022 which was –13.38 per cent. On a quarter-on-quarter basis, the oil sector recorded a growth rate of 20.68 per cent 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.”

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“We Must Ensure Adequate Exploration Of Huge Oil, Gas, Solid Minerals Deposits In North For The Benefit Of Our People” -Inuwa
 The Governor of Gombe State, Muhammadu Inuwa has vowed to work for the actualization of the exploration of the large oil and gas deposits in the North for the benefit of the people.

Mr. Inuwa assured that the Northern Governors’ Forum (NSGF) will work hard to ensure that we catch up with the rest of the country, possibly with the developed parts of the world so that our people will feel the impact of good governance we all pursue.

The governor spoke after his election as the chairman of the northern states Governors’ Forum (NSGF), Tuesday in Abuja.

He expressed delight with the commencement of drilling activities in the Lake Chad Basin which has brought to three drilling sites in the North including Kolmani in Gombe and Bauchi and the one in Nasarawa State.

Mr. Inuwa noted that the Northern region of the country is sitting on not only oil and gas deposits but solid minerals which the Forum has no reason not to exploit and put to use for the benefit of the people.

Earlier, the governor was unanimously elected by the 19 northern governors during their forum’s meeting held at the Transcorp Hilton Hotel Abuja.

Mr. Inuwa takes over from Governor Simon Bako Lalong of Plateau State with effect from 29th May 2023.

In his acceptance speech, the Gombe governor promised to justify the confidence reposed in him by his colleagues across party divides.

He emphasized that the good legacies of the Forum will be sustained to bequeath not only a virile organisation but a better future for the people of the north at the end of his tenure as chairman of the Northern Governors Forum.

Inuwa assured his fellow northern Governors that in line with the objectives of the Northern Governors’ Forum, he will strive to sustain the strides left behind by his predecessors.  He said the focus of the NSGF on economic development will be the driving force of the Forum while his chairmanship lasts.

He observed that the region is challenged by insurgency in the Northeast, ethnic and religious crisis within the North Central as well as farmers/herders clashes and the subsequent effect of banditry and cattle rustling among others.

The new NSGF chairman noted that in spite of the social and economic challenges confronting the northern region, the Forum has made a tremendous impact and has changed the tide for the betterment of its people.

He remarked that since the focus of the NSGF is built on addressing such social challenges, the Forum, under his leadership will do everything possible to ensure that they are addressed in the interest and benefit of the people.

The Gombe State Governor used the occasion to thank the outgoing chairman of the Northern Governors’ Forum and Plateau State Governor Right Hon. Simon Bako Lalong for his administrative ingenuity despite numerous challenges in his State in particular and the North in general.

He said the NEGF will continue to work with past leadership of the Forum in order to consolidate the gains so far recorded and to properly place it on the smooth trajectory of social cohesion, economic emancipation and infrastructural development.

The outgoing Chairman and Governor of Plateau State, Simon Bako Lalong, said Governor Inuwa was elected to Chair the NSGF in view of his experience, sterling leadership qualities and commitment to good governance. He urged him to bring to bear his pedigree of excellence in running the affairs of the Northern Governors Forum.

 Giving synopsis of his stewardship, the Plateau Governor said the past four years have been eventful just as they were challenging in various sectors.

He said the forum had to deal with many issues that affected the northern states individually and the region as a whole.

“As you are all aware, our region for the most part of the period under review continued to face serious challenges with the incidences of kidnapping, banditry, terrorism and other violent crimes that impacted negatively on the lives of the people and the economy of the entire region. However, with our collective and individual efforts coupled with the support of the Federal Government and security agencies, we were able to do our best to contain the situation.

“Without the series of meetings and engagements we held, our people would have been thrown into deeper hunger and despair as the threat by criminals restrained them from engaging in farming which is the main economic activity of the region. Although we have not overcome this challenge completely, we have substantially improved the situation. We hope that the incoming Governors and those continuing their second terms will work together with the Federal Government to ensure the region is secure”.

Ismaila Uba Misilli,
Director-General,
(Press Affairs)
Government House.
Gombe.

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