Service Sector Spurs GDP Growth To 2.54% In Q3

Gross Domestic Product (GDP) grew by 2.54 per cent (year-on-year) in real terms in the third quarter of 2023.

This growth rate is higher than the 2.25 percent recorded in the third quarter of 2022 and higher than the second quarter 2023 growth of 2.51 per cent.

The figure released by the National Bureau of Statistics (NBS) showed performance of the GDP in the third quarter of 2023 was driven mainly by the Services sector, which recorded a growth of 3.99 per cent and contributed 52.70 per cent to the aggregate GDP. The agriculture sector grew by 1.30 per cent, from the growth of 1.34 per cent recorded in the third quarter of 2022.

The growth of the industry sector was 0.46 per cent, an improvement from -8.00 percent 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.

In the third quarter of 2023, Nigeria experienced substantial GDP growth, primarily propelled by the services sector, which expanded by 3.99 per cent, contributing a significant 52.70 per cent to the total GDP. The agricultural sector also witnessed growth, recording a 1.30 percent increase compared to the same quarter in 2022.

Notably, the industry sector showed improvement, achieving a growth of 0.46 per cent, a considerable recovery from the -8.00 per cent recorded in the corresponding quarter of the previous year.

Nominal GDP for the third quarter reached N60.65 trillion, reflecting a robust 16.08 per cent growth from N52.25 trillion in the same period of 2022.

The non-oil sector, a key driver of the nation’s economic activity, exhibited a real growth rate of 2.75 per cent, representing a slight decrease of 1.52 per cent points from the third quarter of 2022 and a marginal decline of 0.84 per cent points from the second quarter of 2023.

In real terms, the non-oil sector accounted for 94.52 per cent of the nation’s GDP in Q3 2023, surpassing the figures recorded in the same period in 2022 but showing a slight dip from the second quarter of 2023.

The oil sector contributed 5.48 per cent to the overall real GDP, marking a decrease from the third quarter of 2022 but showing improvement from the preceding quarter, where it contributed 5.66 per cent.