By John Ikani
Nigeria’s oil and gas sector’s contribution to the country’s Gross Domestic Product (GDP) diminished to a mere 5.34% in Q2/2023. This figure is lower than the corresponding period of 2022 and the preceding quarter, where it had contributed 6.33% and 6.21% respectively.
The National Bureau of Statistics (NBS) released its latest GDP report on Friday, August 25, revealing these statistics.
The NBS report states that during the second quarter of 2023, Nigeria’s average daily oil production was 1.22 million barrels per day (m/bpd).
This is a decrease from the daily average production of 1.43 m/bpd in the same quarter of 2022, by 0.22 m/bpd. Furthermore, it’s lower than the first quarter of 2023 production volume of 1.51 m/bpd, by 0.29 mbpd.
Deterioration in the Oil Sector
The report goes on to highlight that in Q2/2023, the real growth of Nigeria’s oil sector was -13.43% year-on-year, marking a decline of 1.66% points compared to the rate seen in the corresponding quarter of 2022 (-11.77%).
In comparison to Q1 2023, which was -4.21%, this marks a more substantial decrease of 9.22% points.
Meanwhile, in a quarter-on-quarter analysis, the oil sector experienced a growth rate of -14.12% in Q2 2023.
It’s important to note that Nigeria’s Gross Domestic Product (GDP) exhibited a real growth rate of 2.51% year-on-year in Q2 2023.
This growth rate is lower than the 3.54% recorded in the second quarter of 2022 and could be attributed to the ongoing challenging economic conditions.
Insightful Details
The NBS report also elaborates that the Mining and Quarrying sector comprises sub-activities such as Crude Petroleum and Natural Gas, Coal Mining, Metal ore and Quarrying, and other Minerals.
This sector saw nominal growth of -7.11% year-on-year in Q2 2023.
Metal Ores showcased the most substantial growth rate among all sub-activities at 186.40%, followed by quarrying and other minerals activity at 60.83%.
Crude Petroleum and Natural gas remained the principal contributor to the sector, holding a weight of 85.80% in Q2 2023.
Comparing the rate of growth in Q2 2023 to that of Q2 2022 and Q1 2023, there was a decline of 56.86% points and a decrease of 3.59% points, respectively.
The Mining and Quarrying sector’s contribution to the overall GDP in the second quarter of 2023 was 6.58%, which is lower than the contributions recorded in the second quarter of 2022 at 8.20%, as well as the previous quarter at 6.73%.
In real terms, the Mining and Quarrying sector experienced a -12.16% year-on-year growth in the second quarter of 2023. This is lower by 1.07% points compared to the same quarter of 2022 and lower by 8.20% points compared to the first quarter of 2023.
Electricity, Steam, Gas, and Air Conditioning Supply
According to the NBS report, the sector demonstrated a real growth rate of 6.10% in Q2 2023, a considerable increase from the growth rate of -11.48% in the same quarter of 2022.
In comparison to the immediate past quarter, there was a decrease of 3.43% points from the recorded 9.53% growth rate.
On a quarter-on-quarter basis, the sector experienced remarkable growth at a rate of 251.72%. The sector’s contribution to real GDP in the second quarter of 2023 was 0.71%, higher than the 0.69% recorded in Q2 2022.
