The National Bureau of Statistics (NBS) has released a report indicating that Nigeria’s oil and gas sector accounted for a modest 5.34% of the country’s latest Gross Domestic Product (GDP) in the second quarter of 2023.
Compared to the corresponding period in 2022 and the previous quarter, this contribution is lower, as it was 6.33% and 6.21% respectively, Nairametrics reports.
The NBS report outlined that Nigeria’s average daily oil production in Q2/2023 stood at 1.22 million barrels per day (m/bpd), which is a decrease from the 1.43 m/bpd recorded in the same quarter of 2022 and lower than the first quarter of 2023’s production volume of 1.51 m/bpd.
Furthermore, the report indicated that in Q2/2023, the real growth of the oil sector was -13.43% year-on-year, reflecting a decline of 1.66% points compared to the rate in the corresponding quarter of 2022 (-11.77%). This rate also dropped by 9.22% points when compared to Q1/2023’s growth rate of -4.21%.
On a quarter-on-quarter basis, the oil sector experienced a growth rate of -14.12% in Q2/2023, as per the NBS report.
Nigeria’s overall GDP grew by 2.51% (year-on-year) in real terms in Q2/2023, which is lower than the 3.54% recorded in the second quarter of 2022, potentially due to challenging economic conditions.
The Mining and Quarrying sector, which encompasses Crude Petroleum and Natural Gas, Coal Mining, Metal Ore and Quarrying, and other Mineral sub-activities, experienced nominal growth of -7.11% (year-on-year) in Q2/2023.
Among the sub-activities, Metal Ores exhibited the highest growth rate at 186.40%, followed by quarrying and other minerals activity at 60.83%. Crude Petroleum and Natural Gas contributed the most to the sector, weighing in at 85.80% in Q2/2023.
Comparing growth rates of Q2/2023 to Q2/2022 and Q1/2023, there was a decline of 56.86% points and a decrease of 3.59% points respectively.
The Mining and Quarrying sector’s contribution to the overall GDP in the second quarter of 2023 was 6.58%, down from 8.20% recorded in the same period in 2022 and 6.73% in the previous quarter.
In real terms, the sector experienced a decline of -12.16% (year-on-year) in Q2/2023. Compared to the same period in 2022 and the first quarter of 2023, it declined by 1.07% points and 8.20% points respectively.
The sector’s real growth in Q2/2023 was 6.10%, an increase from the growth rate of -11.48% recorded in the same quarter of 2022. Compared to the immediate past quarter, there was a decrease of 3.43% points from the 9.53% recorded.
On a quarter-on-quarter basis, the sector experienced a growth rate of 251.72%. The sector’s contribution to real GDP in the second quarter of 2023 was 0.71%, up from 0.69% recorded in Q2/2022.