Connect with us

Business

Service sector pushed Nigeria’s GDP growth to 2.54% in Q3 2023—Report

Published

1 year ago

on

By Yunusa Abubakar

Nigeria’s gross domestic product (GDP) grew by 2.54 percent in the third quarter (Q3) of 2023, according to the National Bureau of Statistics (NBS).

The report noted that the growth rate is higher than the 2.25 percent recorded in the same quarter last year and higher than the second quarter 2023 growth of 2.51 percent.

NBS disclosed this in its GDP report for Q3, released on Friday.

The bureau said the growth rate was driven by the services sector.

“The performance of the GDP in the third quarter of 2023 was driven mainly by the Services sector, which recorded a growth of 3.99% and contributed 52.70% to the aggregate GDP,” NBS said.

“The agriculture sector grew by 1.30%, from the growth of 1.34% recorded in the third quarter of 2022. The growth of the industry sector was 0.46%, an improvement from -8.00% recorded in the third quarter of 2022.

“In terms of share of the GDP, agriculture, and the industry sectors contributed less to the aggregate GDP in the third quarter of 2023 compared to the third quarter of 2022.”

According to the NBS, the nominal GDP for Q3 2023 stood at N60.66 trillion while the real GDP was N19.44 trillion.

Nominal GDP and real GDP both quantify the total value of all goods produced in a country in a year. However, real GDP is adjusted for inflation, while nominal GDP is not.

NBS said: “In the quarter under review, aggregate GDP stood at N60,658,600.37 million in nominal terms.”

“This performance is higher when compared to the third quarter of 2022 which recorded aggregate GDP of N52,255,809.62 million, indicating a year-on-year nominal growth of 16.08%.”

ALSO READ:  Kebbi Govt. To Construct 300-km Rural Roads – Gov. Idris

The report also shows that the nation in the third quarter of 2023 recorded an average daily oil production of 1.45 million barrels per day (mbpd), higher than the daily average production of 1.20mbpd recorded in the same quarter of 2022 by 0.25mbpd and higher than the second quarter of 2023 production volume of 1.22 mbpd by 0.23mbpd.

“The real growth of the oil sector was –0.85% (year-on-year) in Q3 2023, indicating an increase of 21.83% points relative to the rate recorded in the corresponding quarter of 2022 (-22.67%),” the report said.

“Growth also increased by 12.58% points when compared to Q2 2023 which was –13.43%.

“On a quarter-on-quarter basis, the oil sector recorded a growth rate of 12.47% in Q3 2023. The Oil sector contributed 5.48% to the total real GDP in Q3 2023, down from the figure recorded in the corresponding period of 2022 and up from the preceding quarter, where it contributed 5.66% and 5.34% respectively.”

The NBS report said non-oil sector grew by 2.75 percent in real terms during the reference quarter (Q3 2023).

This rate was lower by 1.52 percent points compared to the rate recorded in the same quarter of 2022 and 0.84 percent points lower than the second quarter of 2023.

“This sector was driven in the third quarter of 2023 mainly by Information and Communication (Telecommunication); Financial and Insurance (Financial Institutions); Agriculture (Crop production); Trade; Construction; and Real Estate, accounting for positive GDP growth,” the bureau said.

“In real terms, the non-oil sector contributed 94.52% to the nation’s GDP in the third quarter of 2023.”

ALSO READ:  Agricultural Prosperity In Nigeria: A Collaboration, Partnerships Approach

NBS said this is higher than the share recorded in the third quarter of 2022 which was 94.34 percent and lower than the 94.66 percent recorded in the second quarter of 2023.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Investors gain N377bn on NGX amid bullish trend

Published

18 hours ago

on

April 11, 2025

By

The Nigerian stock market on Thursday rebounded with a gain of N377 billion on the Nigerian Exchange Ltd.

Market capitalisation rose by N377 billion or 0.58 per cent to close at N65.847 trillion, compared with N65.470 trillion posted on Wednesday.

Similarly, the All-Share Index (ASI) climbed by 601.25 points or 0.58 per cent, to settle at 104,788.25 from N104,187.00 earlier recorded.

The uptrend was driven by strong buying interest in medium and large capitalised stocks such as Caverton Offshore Support Group, VFD Group, Neimeth, among others

Meanwhile, the market breadth closed positive with 47 gainers and 11 losers

On the gainers’ chart, FG152028S1 grew by 100 per cent to close at N100.00 while Caverton Offshore Support Group increased by 10 per cent to close at N2.31 per share.

VFD Group soared by 9.92 per cent to close at N79.80 and Neimeth International Pharmaceutical gained by 9.92 per cent to close at N2.88 per share.

Veritas Kapital Assurance grew by 9.57 per cent to close at N1.03 per share.

On the losers’ chart, ABC Transport dropped by 10 per cent to close at N1.26 while Eterna fell by 9.90 per cent to close at N32.30 per share.

CAP Plc declined by 7.45 per cent to close at N43.50 and Regalins lost by 3.64 per cent to close at 53k per share.

Also, the Nigerian Exchange Group dropped by 3.23 per cent, to close at N34.50 per share.

A total of 432.56 million shares worth N9.719 billion were exchanged across 12,027 transactions.

This is compared to 376.61 million shares valued at N11.89 billion that was exchanged across 11,576 transactions earlier.

ALSO READ:  Equity market loses N62bn

Transactions in the shares of Access Corporation topped the activity chart with 77.861 million shares worth N1.62 billion.

Ellah Lakes followed with 44.24 million shares valued at N132.76 million while Fidelity Bank transacted 32.46 million shares worth N614.78 million.

Zenith Bank traded 30.20 million shares valued at N1.466 billion and United Bank for Africa sold 20.45 million shares worth N718 million. (NAN)

Continue Reading

Business

Renaissance Energy assumes Shell’s liabilities, says NOSDRA

Published

2 days ago

on

April 10, 2025

By

The National Oil Spill Detection and Response Agency (NOSDRA) confirmed Shell’s liabilities will transfer to Renaissance Africa Energy after its acquisition of SPDC.

NOSDRA Director-General, Mr Chukwuemeka Woke, stated this on Wednesday in Abuja during a visit by Renaissance Africa Energy’s Managing Director, Tony Attah.

Renaissance, a consortium of independent oil firms, has completed the acquisition of Shell Petroleum Development Company in Nigeria.

The acquisition gives Renaissance control of Shell’s onshore assets across the Niger Delta region.

Woke said Renaissance must address environmental issues resulting from Shell’s past operations and honour all liabilities incurred.

He assured the agency’s continued collaboration with Renaissance, particularly on projects like the Bodo cleanup and related efforts.

“As regulators, NOSDRA ensures oil operations align with international environmental standards and national laws,” Woke emphasised.

He added, “This acquisition does not exclude Shell’s responsibilities — they are now Renaissance’s to bear.”

He urged Renaissance to prioritise environmental sustainability and energy security while complying with all regulations.

He also noted the significance of abiding by the Polluter Pay Principle and addressing oil spills caused by third-party activities.

Earlier, the Renaissance MD clarified the company is not replacing Shell, but has a distinct mission.

“Our aim is to lead Africa in clean energy generation and security,” Attah stated.

He promised a viable partnership with NOSDRA and strong commitment to environmental preservation.

Attah identified energy poverty, environmental conservation and regulatory adherence as key industry challenges.

He outlined Renaissance’s focus on clean, affordable energy, especially natural gas, to fuel Nigeria’s industrial growth.

The company seeks NOSDRA’s partnership in achieving its goals while ensuring regulatory compliance. (NAN)

ALSO READ:  Tinubu restates commitment to attracting FDIs as Coca-Cola pledges $1bn Investment in Nigeria
Continue Reading

Business

CBN: Petroleum Imports Declined 23.2%, Non-Oil Imports Fell 12.6% In 2024

Published

2 days ago

on

April 10, 2025

By

The Central Bank of Nigeria (CBN) has announced a balance of payments (BOP) surplus of $6.83 billion for the 2024 financial year.

The BOP is a record of all financial transactions made between a country and the rest of the world over a specific period—usually a year or a quarter.

CBN, in a statement signed on Wednesday by Hakama Sidi-Ali, its acting director of corporate communication, said the balance of payments in 2024 represents a surplus compared to the deficit of $3.34 billion recorded in 2023 and $3.32 billion in 2022.

The apex bank said the improvement reflects the impact of wide-ranging macroeconomic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy.

According to the CBN, the current and capital accounts recorded a surplus of $17.22 billion in 2024, driven largely by a goods trade surplus of $13.17 billion.

“Petroleum imports declined by 23.2% to $14.06 billion, while non-oil imports fell by 12.6% to $25.74 billion,” CBN said.

The decline in petroleum products imports occurred the same year Dangote Petroleum Refinery commenced petrol production, providing oil marketers an alternative to importation.

Dangote refinery began to sell petrol to the Nigerian market on September 20.

On the export side, CBN said gas exports rose by 48.3 percent to $8.66 billion, while non-oil exports increased by 24.6 percent to $7.46 billion.

“Remittance inflows remained resilient, with personal remittances rising by 8.9% to $20.93 billion. International Money Transfer Operator (IMTO) inflows surged by 43.5% to $4.73 billion, up from $3.30 billion in 2023, reflecting stronger engagement from the Nigerian diaspora,” CBN said.

ALSO READ:  Kebbi Govt. To Construct 300-km Rural Roads – Gov. Idris

“Official development assistance also rose by 6.2% to $3.37 billion.”

More so, the apex bank said Nigeria recorded a net acquisition of financial assets totalling $12.12 billion.

“Portfolio investment inflows more than doubled, increasing by 106.5% to $13.35 billion, while resident foreign currency holdings grew by $5.41 billion, indicating stronger confidence in domestic economic stability,” the apex bank said.

“Although foreign direct investment fell by 42.3% to $1.08 billion, the overall financial account posted notable gains.”

CBN also reported that the country’s external reserves increased by $6.0 billion to $40.19 billion by year-end 2024, further strengthening its external buffer.

According to the financial regulator, net errors and omissions narrowed significantly by 79.5 percent to negative $5.10 billion in 2024 – down from $24.90 billion in 2023,

The development, the apex bank said, reflects progress in data capture, transparency, and reporting integrity.

Commenting on the report, Olayemi Cardoso, governor of CBN, said the positive turnaround in “our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability”.

Carsoso also said the surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.

Continue Reading