Nigeria's Q2 GDP Grows 4.43%, Fastest in 5 Years

Nigeria's economy experienced a significant growth of 4.43% in the second quarter of 2023, the fastest expansion in five years, according to data from the National Bureau of Statistics (NBS). Analysts attribute this growth to government reforms that led to a rebound in oil output and stronger activity in the non-oil sector.

In comparison, the GDP growth for the same period in 2022 was 4.24%. The oil sector grew by 4.16% in Q2 2023, up from 3.92% in Q1, with crude production increasing to approximately 1.72 million barrels per day from 1.55 million bpd.

Higher oil output and elevated crude prices, influenced by the U.S.-Israel-Iran crisis, have bolstered foreign-exchange liquidity and government revenues. The non-oil sector accounted for 95.84% of real GDP in Q2, slightly down from 96.08% in Q1.

Joshua Chinga, Senior Investment Associate at AAG Capital, noted that while there is an improvement in economic momentum, it is not yet a broad-based prosperity cycle. Boye Oyekunle, a financial adviser, highlighted ongoing pressures in the manufacturing sector due to costs related to power, foreign exchange, and logistics.