Nigeria’s Economic Growth Slows in Q2
Nigeria’s economic growth slowed down in the second quarter (Q2) of 2023, according to data released by the National Bureau of Statistics (NBS). This marked another decline in real growth in a nation with a sustained increase in population.
In its report, the statistics office said in the first quarter of 2023, Nigeria’s real GDP at basic prices grew by 2.31% on a year-on-year basis, showing a lower growth rate compared to the corresponding quarter of 2022 which was 3.11%.
In Q2, GDP growth remained positive at 2.51%, yet lower compared to Q2 of 2022 when the economy expanded by 3.54%. The statistics office said relative to Q1 and Q2 of 2022, the performances in 2023 indicate a decrease of 0.80% points in the Q1 of 2023 growth rate and a fall of 1.03% points in Q2 of 2023.
The report said household consumption expenditure in Q1 and Q2 of 2023 grew by -24.95% and 3.30% in real terms, year-on-year. However, the growth rates in Q1 and Q2 of 2023 were lower than the rates recorded in Q1 of 2022 and higher than Q2 of 2022.
On year on year, Nigerian government consumption expenditure grew by 17.83% and 5.79% in Q1 and Q2 of 2023 respectively, compared to -9.91% and -6.23% in Q1 & Q2 of 2022. Net export growth was negative in Q1, which was a departure from a positive growth rate in the fourth quarter of 2022.
Net exports grew in real terms by -1,740.06% and 1.42% respectively in Q1 and Q2 of the year, lower than -160.14% and 70.27% seen in the comparable period in 2022.
Meanwhile, national disposable income grew by 9.29% and 8.29% in Q1 and Q2 of 2023 respectively, higher than the growth of 1.55% and 1.84% in Q1 and Q2 of 2022 respectively on a year-on-year basis in real terms.
The growth of national disposable income became positive since Q4 of 2021, showing a better performance in Q1 & Q2 of 2023 relative to Q1 and Q2 of 2022.
Compensation of employees in the Q1 and Q2 of 2023 grew by 15.08%, and 19.41% respectively in real terms on a year-on-year basis. These growth rates were higher than the 6.48% and 3.93% recorded in Q1 and Q2 of 2022 respectively.
In the period, household consumption accounted for the largest share of real Gross Domestic Product at market prices, representing 57.18% and 64.05% in Q1 and Q2 of 2023 respectively.
This came in stark contrast with 78.02% and 63.65% reported in the corresponding quarters of 2022. Nigeria’s net exports, which represented 19.55% of total real GDP at market prices in Q1 of 2023, decreased in Q2 of 2023 to 15.44%, the statistics office said in the report.
The share of general government consumption expenditure represented 5.93% in Q1 of 2023 but decreased slightly to 5.92% in Q2 of 2023. Gross fixed capital formation accounted for 15.70% of real GDP in Q1 of 2023 and declined to 13.10% in Q2 of 2023.
