In Q2 2023, Nigeria’s oil and gas sector saw a decline in contribution to GDP, accounting for just 5.34%, down from the previous quarter’s 6.21%. The National Bureau of Statistics (NBS) reported a daily oil production of 1.22 million barrels, lower than both Q2 2022 and Q1 2023.
The sector’s real growth dropped significantly by -13.43% YoY, a decrease of 1.66% points from Q2 2022. This decline was even more pronounced when compared to Q1 2023, registering a decrease of 9.22% points at -4.21%. On a quarterly basis, the sector’s growth rate was -14.12% in Q2 2023.
The broader GDP of Nigeria grew by 2.51% YoY in real terms in Q2 2023, lower than the 3.54% recorded in the same period of 2022. Economic challenges were attributed to this slower growth.
The Mining and Quarrying sector, encompassing various sub-activities like Crude Petroleum, Natural Gas, Coal Mining, and Metal Ore, faced a nominal -7.11% YoY growth in Q2 2023. Among the sub-activities, Metal Ores showed the highest growth at 186.40%, followed by quarrying and other minerals at 60.83%. Crude Petroleum and Natural Gas contributed the most to the sector at 85.80% weight in Q2 2023.
Comparing Q2 2023 growth to Q2 2022 and Q1 2023, there was a decline of 56.86% points and 3.59% points respectively. The Mining and Quarrying sector’s contribution to the GDP was 6.58%, down from both Q2 2022 and the previous quarter. In real terms, the sector contracted by -12.16% YoY in Q2 2023.
However, there was a positive note in the report, as the sector’s real growth improved by 6.10% in Q2 2023, a significant increase from the growth rate of -11.48% in Q2 2022. In comparison to the last quarter, there was a decrease of 3.43% points from 9.53%. The sector’s contribution to real GDP rose to 0.71% in Q2 2023, up from 0.69% in Q2 2022.
