Nigeria’s Economic Growth Slowdown in Q3

Nigeria’s Economic Growth Slowdown in Q3

Nigeria’s economic growth slowdown by 65 basis points in the third quarter of 2022 amidst uncertainties. According to the National Bureau of Statistics (NBS), real gross domestic product (GDP) growth slowed to 2.25% year on year.

Though Africa’s largest economy with about $450 billion in gross domestic product records yet another growth but growth trajectory slowdown in the third quarter over the decline in oil production volume following oil theft and weak infrastructure.

Recall that in the second quarter of the year, GDP expanded by 3.54% year on year. GDP breakdown shows that the oil sector remains in the contractionary territory, declining by 22.67% year on year versus -11.77% in the second quarter of the year.

NBS report indicates that crude oil production averaged 1.20 million barrels per day (mbpd) in the third quarter, 23.6% lower than the comparable period year in Q3-2021 when it printed at 1.57mbpd.

Data show that the Nigerian oil sector contributed 5.66% to the total GDP, falling from 6.33% in the second quarter of the year. On the other hand, the non-oil sector maintained its positive growth path, albeit lower than the previous quarter, rising by 4.27% year on year in Q3.

Again, the surge came weaker when compared with +4.77% year-on-year growth in the second quarter record. Then, the non-oil sector contributed 94.34% to the total GDP, representing an improvement when compared with 93.67% it contributed to the economy in Q2.

The agriculture sector grew by 1.34% year on year as against +1.20% reported in the second quarter of 2022; Industries contracted by 8.00% compared to a decline of 2.30% in Q2-2022; while Services grew by 7.01% versus +6.70% in the second quarter of the year.

In terms of contribution, services, agriculture, and industries, respectively, accounted for 51.96%, 29.67%, and 18.37% of overall output growth. # Nigeria’s Economic Growth Slowdown in Q3

Read: Uncertain FX Policy Marks Nigeria Unattractive Economy for Foreign Investors

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