Amidst the several challenges facing its economy, Nigeria’s Gross Domestic Product (GDP) still managed to achieve some form of growth.
You will agree with us that the fourth quarter of 2023 was filled with turbulence for businesses, government, workers, and the teeming youths.
But in the face of that hardship, the Nigerian Bureau of Statistics (NBS) data says the GDP recorded an increase.
There are many things that defy reasoning and understanding, such things leave the human mind in a state of query. But in the end, it is all about facts.
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One of such things is that despite the economy being challenged on many fronts, it showed resilience and also appreciated in the fourth quarter of 2023.
Nigeria’s Gross Domestic Product (GDP) grew by 3.46% in 2023 according to data released by the National Bureau of Statistics (NBS).
The growth is slightly lower than 3.52% recorded in the same period of 2022.
Services Sector Leads Growth
The services sector emerged as the primary driver of growth, expanding by 3.98% and contributing 56.55% to the overall GDP.
The agriculture sector experienced growth, expanding by 2.10% compared to the same period in 2022.
Additionally, the industry sector recorded a notable improvement, growing by 3.86%, contrasting the -0.94% contraction observed in Q4 2022.
On an annual basis, the GDP expanded by 2.74% in 2023 compared to 3.10% in the previous year, reflecting sustained but moderated growth.
To Sustain and accelerate growth, continued efforts at addressing the bottlenecks will be required.
Basically, this will foster investment and promote inclusive economic policies across sectors.
Nigeria’s Oil Sector Growth
Surge in average daily oil production to 1.55 million barrels per day, is what was responsible for the growth witnessed in the sector.
This led to the real growth rate of 12.11% year-on-year, posted during the Q4 2023.
The oil sector contributed 4.70%, to the GDP, despite the global market fluctuations and production constraints.
Nigeria’s Non-Oil Sector
The non-oil sector sustained growth momentum, posting a 3.07% real growth rate in Q4 2023.
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This growth was primarily attributed to key industries including finance, telecommunications, agriculture, manufacturing, and construction.
These industries account for 95.30% of the nation’s GDP in the same quarter.
The non-oil sector continues to drive economic diversification efforts and reduce dependence on oil revenues.
