Nigeria’s GDP grows to 2.54% in Q3 of 2023
By Patience Ikpeme
Nigeria’s economy experienced a slight boost in the third quarter of 2023, with the Gross Domestic Product (GDP) reaching 2.54 percent, according to the National Bureau of Statistics (NBS). This growth rate surpasses the 2.25 percent recorded in the same quarter last year and is higher than the 2.51 percent growth achieved in the second quarter of 2023.
The service sector played a significant role in driving this growth, contributing 52 percent to the overall performance of the GDP. This makes it the highest contributing sector to the country’s economic expansion. The NBS states, “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 percent and contributed 52.70 percent to the aggregate GDP.”
Compared to the third quarter of 2022, both the agriculture and industry sectors contributed less to the country’s GDP in the third quarter of 2023, even though there was a slight growth in both sectors. The agriculture sector grew by 1.30 percent, improving from the 1.34 percent growth recorded in the third quarter of 2022. The industry sector experienced a growth rate of 0.46 percent, a significant improvement from the -8.00 percent contraction recorded in the third quarter of 2022.
The NBS reports that the nominal GDP for the third quarter of 2023 was N60.66 trillion, while the real GDP stood at N19.44 trillion. Both nominal GDP and real GDP measure the total value of all goods produced in a country within a year. However, real GDP is adjusted for inflation, while nominal GDP is not.
“In the quarter under review, aggregate GDP stood at N60,658,600.37 million in nominal terms,” the NBS stated. “This performance is higher when compared to the third quarter of 2022, which recorded an aggregate GDP of N52,255,809.62 million, indicating a year-on-year nominal growth of 16.08 percent.”
This significant growth in the third quarter speaks to the resilience and potential of Nigeria’s economy. It highlights the importance of the service sector in driving growth, while also showcasing improvements in the agriculture and industry sectors. With sustained efforts and appropriate economic policies, Nigeria has the potential to further strengthen its economy and create more opportunities for its citizens.
