How Nigeria’s Key Economic Sectors Perform

Nigeria’s economic growth slowdown to 2.31% in the first quarter of 2023 following failed naira redesign policy implementation, election, and global uncertainties. In 2022, gross domestic product was up 3.1% against 3.4% in 2021.

Overall, Nigeria’s gross domestic product is estimated at about $450 billion in 2022 – remember vision 20:2020 target was $900 billion – which means growth has been unimpressive.

Is Nigeria’s economy growing really? The economy is starved of growth because population growth is making a mess of the single-digit growth record. And it looks like Nigeria has never had a good economic manager.

As a result, the largest economy in Africa has weak per capita income, which actually explains the level of poverty that has redefined Nigerians’ identity. Here are key economic records as provided by the National Bureau of Statistics.

The Mining & Quarrying sector

This sector grew nominally by -3.52% (year-on-year) in Q1 2023. Metal ores exhibited the highest growth rate of all the sub-activities at 78.92%, followed by coal mining activity at 17.09%.

However, crude petroleum and natural gas was the main contributor to the sector with a weight of 99.12% in Q1 2023. Comparing Q1 2023’s growth rate relative to Q1 2022 and Q4 2022 growth rates, there was a decline of 29.46% points and a fall of 2.45% points respectively.

The mining & quarrying sector contributed 6.73% to the overall GDP in the first quarter of 2023, lower than the contributions recorded in 2022 first quarter at 7.89% and higher than the previous quarter recorded at 4.51%. In real terms, the sector grew by –3.96% (year-on-year) in the first quarter of 2023.

Compared to the same quarter of 2022 and the fourth quarter of 2022, it was higher by 21.93% points and higher by 7.43% points respectively. Quarter-on-quarter, the growth rate recorded was 12.26% during the quarter.

The mining and quarrying contribution to real GDP was 6.26% in the first quarter of 2023, lower than the rate of 6.67% recorded in the corresponding quarter of 2022 and higher than the 4.71% recorded in the fourth quarter of 2022.

Agriculture

The sector grew by 5.24% year-on-year in nominal terms in Q1 2023, showing a decrease of 6.31% points from the same quarter of 2022. Looking at the preceding quarter’s growth rate of 18.67%, there was a decrease of 13.44% points. Crop Production remained the major driver of the sector.

This is evident as it accounts for 86.85% of the overall nominal value of the sector in the first quarter of 2023. Quarter-on-quarter growth stood at -28.83% in the first quarter of 2023. Agriculture contributed 19.63% to nominal GDP in the first quarter of 2023.

This figure was lower than the rate recorded in the first quarter of 2022 and lower than the fourth quarter of 2022 which recorded 21.09% and 24.90% respectively.

The agricultural sector in the first quarter of 2023 grew by -0.90% (year-on-year) in real terms, a decrease of 4.06% points from the corresponding period of 2022, and a decrease of 2.95% points from the preceding quarter which recorded a growth rate of 2.05%.

It grew on a quarter-on-quarter basis at -30.95%. However, the sector contributed 21.66% to overall GDP in real terms in Q1 2023, lower than the contribution in the first quarter of 2022 and lower than the fourth quarter of 2022 which stood at 22.36% and 26.46% respectively.

Four sub-activities make up the Agricultural sector: Crop Production, Livestock, Forestry and Fishing.

Manufacturing

Nominal GDP growth of the manufacturing sector in the first quarter of 2023 was recorded at 17.85% (year-on-year), 6.13% points higher than the figure recorded in the corresponding period of 2022 (11.72%) and 8.99% points higher than the preceding quarter figure of 8.86%.

Quarter-on-quarter, growth of the sector was recorded at 5.05% during the quarter.

The contribution of Manufacturing to Nominal GDP in the first quarter of 2023 was 15.70%, higher than the figure recorded in the corresponding period of 2022 at 15.06% and higher than the fourth quarter of 2022 at 13.49%.

Real GDP growth in the manufacturing sector in the first quarter of 2023 was 1.61% (year-on-year), lower than the same quarter of 2022 and lower than the preceding quarter by 4.28% points and 1.22% points respectively.

The growth rate of the sector on a quarter-on-quarter basis stood at 1.63%. The Real contribution to GDP in the 2023 first quarter was 10.13%, lower than the 10.20% recorded in the first quarter of 2022 and higher than the 8.40% recorded in the fourth quarter of 2022.

The manufacturing sector is comprised of thirteen activities: Oil Refining; Cement; Food, Beverages and Tobacco; Textile, Apparel, and Footwear; Wood and Wood products; Pulp Paper and Paper products; Chemical and Pharmaceutical products; Non-metallic Products, Plastic and Rubber products; Electrical and Electronic; Basic Metal and Iron and Steel; Motor Vehicles and Assembly; and Other Manufacturing.

Electricity, Gas, Steam and Air Conditioning Supply

The Electricity, Gas, Steam and Air conditioning Supply sector recorded a year-on-year growth of 18.19% in the first quarter of 2023. This was 20.60% points higher than the -2.41% growth rate recorded in the corresponding quarter of 2022, and 4.22% points lower than the growth rate of 22.41% recorded in the quarter before. Quarter–on-quarter, the sector recorded a growth rate of -67.07% in Q1 2023.

The contribution of Electricity, Gas, Steam and Air Conditioning Supply to Nominal GDP in the first quarter of 2023 was 0.40%, higher than the contribution made in the corresponding quarter of 2022 at 0.38% and lower than its contribution of 1.09% in the quarter before.

In real terms, the sector grew by 9.53% in Q1 2023, an increase from the growth rate of -11.20% recorded in the same quarter of 2022. When compared to the immediate past quarter, there was a decrease of 5.69% points from 15.22% recorded. On a quarter-on-quarter, the sector grew at a rate of -67.63%. The contribution of this sector to real GDP in the first quarter of 2023 was 0.20%, higher than the 0.19% recorded in Q1 2022. Moreso, the figure in 2023 was lower than the 0.53% recorded in Q4 2022.

Water Supply, Sewerage, Waste Management and Remediation

This sector grew by 28.39% in nominal terms (year-on-year) in the 2023 first quarter, an increase of 11.13% points compared to the rate of 17.27% recorded in the same quarter of 2022. There was an increase of 7.54% points when compared to the rate recorded in the preceding quarter. Nominal growth quarter-on-quarter was recorded at 20.08%.

The water Supply, Sewerage, Waste Management and Remediation sector contributed 0.32% to nominal GDP in the first quarter of 2023, higher than the 0.29% it contributed a year earlier and higher than the 0.24% contributed in the fourth quarter of 2022. The real growth rate of the Water Supply, Sewerage, Waste Management and Remediation sector in the first quarter of 2023 was recorded at 5.57% (year-on-year), lower by 7.65% points from the rate recorded in the previous year.

Relative to the preceding quarter, there was a decrease of 3.23% points. Quarter-on-quarter, the sector grew by 17.60% in real terms. Its contribution to total real GDP was 0.23% in the first quarter of 2023, relatively same with its contribution of 0.23% in the same quarter of the previous year, and higher than the immediate past quarter where it contributed 0.17%.

Construction

The Construction sector grew by 37.71% in nominal terms (year-on-year) in the 2023 first quarter, an increase of 29.90% points compared to the rate of 7.81% recorded in the same quarter of 2022. There was an increase of 20.57% points when compared to the rate recorded in the preceding quarter. Nominal growth quarter-on-quarter was recorded at 4.82%.

Construction contributed 11.79% to nominal GDP in the first quarter of 2023, higher than the 9.68% it contributed a year earlier and higher than the 10.16% contributed to the fourth quarter of 2022. The real growth rate of the construction sector in the first quarter of 2023 was recorded at 3.27% (year-on-year), lower by 1.56% points from the rate recorded in the previous year.

Relative to the preceding quarter, there was a decrease of 0.53% points. Quarter-on-quarter, the sector grew by 2.78% in real terms. Its contribution to total real GDP was 4.22% in the first quarter of 2023; higher than its contribution of 4.18% in the same quarter of the previous year, and higher than in the immediate past quarter where it contributed 3.47%.

Trade

In the first quarter of 2023, the nominal year-on-year growth rate of Trade stood at 2.14%. This indicates a decrease of 12.23% points when compared to the first quarter of 2022 growth rate of 14.37% and 12.67% points lower than the previous quarter’s growth rate of 14.82%. The quarter-onquarter growth rate was -16.06%. Trade’s contribution to Nominal GDP in the first quarter of 2023 was 12.28%, lower than the contribution in the same quarter of the previous year of 13.59%, and lower than the preceding quarter recorded at 13.20%.

In real terms, Trade’s year-on-year growth stood at 1.31% in the first quarter of 2023, which was 5.24% points lower than the rate recorded in the previous year at 6.54%, and 3.24% points lower than in the preceding quarter at 4.54% growth rate.

Quarter-on-quarter growth stood at -14.83%. This growth was lower than the quarter-on-quarter growth recorded in the fourth quarter of 2022 at 14.41%. Trade’s contribution to GDP was 15.97%, lower than the 16.13% it represented in the previous year, and higher than the 15.82% recorded in the 2022 fourth quarter.

Accommodation and Food Services

In nominal terms, Accommodation and Food Services grew by 19.54% year -on- year in 2023 first quarter. This represents an increase of 12.98% points relative to the same quarter of 2022 when the growth rate was 6.57%. Growth was lower than in the preceding quarter by 6.02% points when growth was 25.56%. Quarter-on-quarter growth stood at 12.46%.

Accommodation and Food Services contribution to nominal GDP stood at 1.19% in the first quarter of 2023, higher than the figure recorded in the previous year and higher than the fourth quarter of 2022 contribution recorded at 1.13% and 0.96% respectively.

The real year-on-year growth rate for this sector in the 2023 first quarter stood at 3.59%, higher by 1.66% points from 1.93% recorded in the previous year. Relative to the preceding quarter, the growth rate was 1.53% points lower than the 5.12% recorded. Quarter-on-quarter, real growth was 7.53%.

The sector in the first quarter of 2023 represented 1.01% of the real GDP, which was higher than the contribution of 1.00% recorded in the first quarter of 2022 and higher than the fourth quarter of 2022 contribution of 0.79%. Transportation and Storage Six activities make up the

Transportation and Storage sector:

Road Transport; Rail Transport and Pipelines; Water Transport; Air Transport; Transport Services; and Post and Courier Services. The sector grew by 20.22% in nominal terms in the first quarter of 2023 (year-on-year). This rate was higher relative to the figure of -16.02% recorded for the corresponding quarter of 2022 and lower than the 33.67% in the previous quarter.

Five of six sub-activities under the Transport and Storage industry recorded positive growth rates in the first quarter of 2023.

Quarter-on-quarter growth stood at -33.85%. Transport activities contributed 1.71% to Nominal GDP in Q1 2023, an increase from the 1.60% recorded in the corresponding period of 2022, and lower than the 2.33% recorded in the fourth quarter of 2022. In real terms, the Transportation and Storage sector grew by 9.36% in Q1 2023.

This rate represents an increase of 26.77% points relative to the same quarter of the previous year and an increase of 8.58% points relative to the preceding quarter. Quarter-on-quarter, growth was -38.11%. The contribution of the sector to real GDP in the Q1 of 2023 was 1.18%, a rise from 1.10% recorded in the preceding year and lower than 1.61% recorded in the fourth quarter of 2022.

Information and Communication

The Information and Communication sector is composed of the four activities of Telecommunications and Information Services; Publishing; Motion Picture, Sound Recording and Music Production; and Broadcasting.

In nominal terms, in the first quarter of 2023, the sector growth was recorded at 41.84% (year-onyear), 21.30% points increase from the rate of 20.54% recorded in the same quarter of 2022, and 20.43% points higher than the rate recorded in the preceding quarter.

The quarter-on- quarter growth rate recorded in the first quarter of 2023 was 14.64%. The Information and Communications sector contributed 13.23% to the total Nominal GDP in the 2023 first quarter, higher than the rate of 10.55% recorded in the same quarter of 2022 and higher than the 10.42% it contributed in the preceding quarter.

The sector in the first quarter of 2023 recorded a growth rate of 10.32% in real terms, year-on-year. From the rate recorded in the corresponding period of 2022, there was a decrease of 1.75% points. On a quarter-on-quarter, the sector exhibited a growth of -9.12% in real terms.

Of total real GDP, the sector contributed 17.47% in the 2023 first quarter, higher than in the same quarter of the previous year in which it represented 16.20% and higher than the preceding quarter in which it represented 16.22%.

Arts, Entertainment and Recreation

In Nominal terms, the growth of Arts, Entertainment and Recreation sector was 6.31% in the first quarter of 2023 (year-on-year), representing a decrease of 16.79% points relative to the preceding quarter’s growth rate of 23.11% and a decrease of 8.70% points compared with the year-earlier growth rate of 15.01%.

On a quarterly basis, growth was recorded at 24.64%, higher than the quarteron-quarter growth of Q4 2022 recorded at 18.00%. The activity contributed 0.21% to the total nominal GDP in the first quarter of 2023.

This contribution was lower than the 0.23% it contributed in Q1 of 2022 and higher than the 0.15% it contributed in Q4 of 2022. In real terms, the activity grew by 5.47% year-on-year, which was higher than the rate recorded in Q1 2022 by 3.17% points, and lower by 2.05% points when compared with that of the preceding quarter.

Quarter-on-quarter, growth stood at 26.48% in real terms. Overall, Art, Entertainment and Recreation contributed 0.31% to real GDP in Q1 2023, slightly higher than the 0.30% recorded in the same quarter of 2022 and higher than the 0.21% recorded in the fourth quarter of 2022.

Real Estate Services

In nominal terms, Real Estate Services in the first quarter of 2023 grew by 2.36%, lower by 8.47% points than the growth rate reported for the same period in 2022 and lower by 8.25% points compared to the preceding Quarter. On a quarter-on-quarter, the sector growth rate was -28.39%.

The contribution to nominal GDP in Q1 2023 stood at 4.46%, relative to 4.92% recorded in the first quarter of 2022 and 5.62% in the fourth quarter of 2022.

Real GDP growth recorded in the sector for the first quarter of 2023 stood at 1.70%, lower than the growth recorded in the first quarter of 2022 by 2.74% points, and lower by 1.08% points relative to Q4 2022.

On a quarter-on-quarter, the sector grew by -27.52% in the first quarter of 2023. It contributed 5.31% to real GDP in Q1 2023, lower than the 5.34% it recorded in the corresponding quarter of 2022.

Finance and Insurance

The Finance and Insurance Sector consists of the two subsectors, Financial Institutions and Insurance, in which the former accounted for 91.75% and the latter 8.25% of the sector respectively in real terms in Q1 2023. As a whole, the sector grew at 22.37% in nominal terms (year-on-year), with the growth rate of Financial Institutions at 25.99% and -7.25% growth rate recorded for Insurance.

The overall rate was lower than Q1 2022 by 9.91% points, and lower by 0.21% points than the preceding quarter. The quarter-on-quarter growth was 12.55%. The sector’s contribution to the nominal GDP was 4.11% in Q1 2023, higher than the 3.80% it represented a year previous, and higher than the contribution of 3.30% it made in the preceding quarter.

Growth in this sector in real terms totaled 21.37%, lower by 1.86% points from the rate recorded in the 2022 first quarter and higher by 9.76% points from the rate recorded in the preceding quarter. Quarter-on-quarter growth in real terms stood at 14.20%.

The contribution of Finance and Insurance to real GDP totaled 5.35%, higher than the contribution of 4.51% recorded in the first quarter of 2022 by 0.84% points, and higher than 3.95% recorded in Q4 2022 by 1.40% points.

Professional, Scientific and Technical Services

In the first quarter of 2023, Professional, Scientific and Technical Services recorded a nominal growth of 3.93% (year-on-year), which is 5.40% points lower than Q1 2022, and 9.10% points lower than the rate recorded in Q4 2022.

Quarter-on-quarter, the sector grew by -18.88%. The contribution of Professional, Scientific and Technical Services to nominal GDP was 2.50% in Q1 2023, down from the 2.72% contribution in Q1 2022 and down from the 2.78% recorded in Q4 2022.

Real growth in the sector was recorded at 3.08% in Q1 2023, an increase of 1.23% points relative to the rate recorded in the corresponding period of 2022, and 0.16% points higher than that of Q4 2022. On a quarter-on-quarter basis, the sector grew by -17.69% in Q1 2023.

Professional, Scientific and Technical Services contributed 3.25% to aggregate GDP in Q1 2023, higher than the contribution of 3.23% in Q1 2022 and lower than the 3.34% recorded in Q4 2022. Administrative and Support Services

In nominal terms, the Administrative and Support Services sector grew by -3.85% (year-on-year) in Q1 2023, lower by 15.20% points compared to the first quarter of 2022 and lower by 16.82% points than the growth rate in the previous quarter.

Quarter-on-quarter, the growth rate in the sector was -20.17% in Q1 2023. The contribution of Administrative and Support Services to nominal GDP was 0.01% in Q1 2023, relatively lower than the 0.02% it contributed in the same period in 2022 and the same with the 0.02% it contributed in the preceding quarter.

In real terms, the sector recorded a growth rate of -4.64% (year-on-year), a decrease of 8.36% points from the corresponding quarter of 2022 and a decrease of 7.50% points from the rate recorded in Q4 2022. Quarter–on-quarter, the sector grew by -19.00% in Q1 2023.

The sector’s contribution to real GDP was 0.02% in the 2023 first quarter, roughly unchanged from the corresponding quarter in 2022 and 2022 fourth quarter. 20 Public Administration In nominal terms, the Public Administration sector grew by 2.87% in Q1 2023, lower by 6.54% points from the corresponding quarter of 2022 and lower by 8.53% points relative to Q4 2022.

Quarter-on-quarter, the sector grew by -36.17%. The contribution of Public Administration to Nominal GDP stood at 1.25% in Q1 2023, lower than the 1.38% recorded in Q1 2022 by 0.12% points and lower than the 1.77% recorded in Q4 2022 by 0.52% points.

In real terms, the sector recorded a growth rate of 2.03% (year-on-year) in Q1 2023, higher by 0.11% points and higher by 0.59% points from the Q1 2022 rate and the Q4 2022 rate respectively. On a quarter-on-quarter basis, the sector grew by -35.24% in Q1 2023.

The contribution of Public Administration to real GDP stood at 1.63% in Q1 2023, relatively same with the 1.63% recorded in Q1 2022 and lower than the 2.12% in Q4 2022.

Education Nominal growth in the Education sector in the first quarter of 2023 was 1.42% (year-on-year), down by 6.46% points from the growth of 7.88% reported in the corresponding quarter of 2022, and also down by 9.05% points when compared to Q4 2022 growth rate of 10.47%.

The quarter-on-quarter growth rate was -24.46%.

The contribution of Education to nominal GDP in Q1 2023 was 1.49%; down from 1.66% estimated in Q1 2022 and down from 1.78% in Q4 2022. Real growth in Education year-on-year stood at 0.72% in Q1 2023; a decrease of 1.15% points from the corresponding quarter of 2022 which was estimated at 1.87%.

When compared with the previous quarter’s rate of 1.23%, the sector’s growth decreased by 0.51% points. The Sector contributed 1.89% to total real GDP in Q1 2023 which was lower than the 1.92% reported for the corresponding quarter in 2022 and lower than the 2.08% recorded in Q4 2022.

Human Health and Social Services

The year-on-year growth rate for Human Health and Social Services in nominal terms was 3.20%, down relative to the growth rate of 13.35% reported in the same quarter of 2022 by 10.15% points and down by 11.67% points compared to Q4 2022.

Quarter-on-quarter growth was -8.30%. The contribution to nominal GDP was 0.55% in Q1 2023, lower than the 0.60% recorded in Q1 2022 and up from the 0.54% recorded in Q4 2022. Real GDP growth of Human Health and Social Services for Q1 2023 stood at 2.46% (year-on-year) compared to 5.91% for the corresponding period of 2022 which shows a fall of 3.45% points.

The growth in Q1 2023 was lower than the growth recorded in Q4 2022 by 1.74% points. Quarter-on-quarter, this sector grew by -7.08%. The contribution of Human Health and Social Services to real GDP was 0.73% in Q1 2023, relatively the same as the figure recorded in Q1 2022 and higher than the 0.66% recorded for the preceding quarter.

Other Services

In nominal terms, Other Services grew by -19.39% (year-on-year) in Q1 2023. This growth rate was lower than the 10.71% growth rate recorded in the same quarter of the previous year and lower than the growth rate of 9.90% in Q4 2022 by 30.11% points and 29.29% points respectively. Quarter-on quarter growth was -19.61%.

This sector contributed 2.43% to the aggregate nominal GDP in Q1 2023, lower than the 3.41% it contributed in the same period of the previous year and lower than the 2.73% it contributed in the preceding quarter. Other Services’ real GDP grew by -20.05% (year-on-year) in Q1 2023.

This growth was lower by 23.19% points than the growth recorded in the same period of the previous year, and lower by 20.12% points from Q4 2022. Quarter-on-quarter growth was -18.44%. The sector contributed 3.17% to real GDP in Q1 2023, lower than the 4.05% recorded for the corresponding quarter of 2022 and lower than the 3.27% recorded in Q4 2022.