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.

Olawale Moses Oyewole
Olawale Moses Oyewole
Olawale Moses Oyewole is an adept writer who stays on top of current events and curate informative and engaging articles for his readers. He is a digital strategist who help brands gain online visibility.

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