Despite return of fragile peace in the Nigeria Delta region which hosts bulk of the nations oil reserve, the second quarter of 2023 recorded an average daily oil production of 1.22 million barrels per day (mbpd).
This, according to the Nigerian Bureau of Statistics(NBS), was much lower than the daily average production of 1.43mbpd recorded in the same quarter of 2022 by 0.22mbpd and lower than the first quarter of 2023 production volume of 1.51 mbpd by 0.29mbpd.
The real growth of the oil sector was 13.43 per cent (year-on-year) in Q2 2023, indicating a decrease of 1.66 per cent points relative to the rate recorded in the corresponding quarter of 2022 (-11.77 per cent).
Growth also decreased by 9.22 per cent points when compared to Q1 2023 which was -4.21 per cent.
On a quarter-on-quarter basis, the oil sector recorded a growth rate of -14.12 per cent in Q2 2023 and contributed 5.34 per cent to the total real GDP in Q2 2023, down from the figure recorded in the corresponding period of 2022 and down from the preceding quarter, where it contributed 6.33 per cent and 6.21 per cent respectively.
The agency further said the non-oil sector grew by 3.58 per cent in real terms during the reference quarter (Q2 2023). This rate was lower by 1.19 per cent points compared to the rate recorded in the same quarter of 2022 and 0.81 per cent points higher than the first quarter of 2023. This sector was driven in the second quarter of 2023 mainly by Information and Communication.
In real terms, the non-oil sector contributed 94.66 per cent to the nation’s GDP in the second quarter of 2023, higher than the share recorded in the second quarter of 2022 which was 93.67 per cent and higher than the first quarter of 2023 recorded as 93.79 per cent.
“The Mining & Quarrying sector consists of Crude Petroleum and Natural Gas, Coal Mining, Metal ore and Quarrying and other Minerals sub-activities. This sector grew nominally by -7.11 per cent (year-on-year) in Q2 2023,” it said.
Metal Ores exhibited the highest growth rate of all the sub-activities at 186.40 per cent followed by quarrying and other minerals activity at 60.83 per cent.
However, Crude Petroleum and Natural gas was the main contributor to the sector with a weight of 85.80 per cent in Q2 2023.
Comparing Q2 2023’s rate of growth relative to Q2 2022 and Q1 2023 growth rates, there was a decline of 56.86 per cent points and a fall of 3.59 per cent points respectively.
The Mining & Quarrying sector contributed 6.58 per cent to the overall GDP in the second quarter of 2023, lower than the contributions recorded in 2022 second quarter at 8.20 per cent and lower than the previous quarter at 6.73 per cent.
In real terms, the Mining and Quarrying sector grew by –12.16 per cent (year-on-year) in the second quarter of 2023. Compared to the same quarter of 2022 and the first quarter of 2023, it was lower by 1.07 per cent points and lower by 8.20 per cent points respectively.
Quarter- on- quarter, the growth rate recorded was -11.11 per cent during the quarter. The contribution of Mining and Quarrying to Real GDP in the quarter under review stood at 5.58 per cent, lower than the rate of 6.51 per cent recorded in the corresponding quarter of 2022 and lower than the 6.26 per cent recorded in the first quarter of 2023.