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.”