Nigeria’s GDP will grow by 2.54% in Q3 2023

Despite fuel subsidy woes, services sector helped Nigeria’s GDP grow by 2.54% in the third quarter

Despite the hardship caused by the removal of fuel subsidies in June, Nigeria’s gross domestic product is expected to grow modestly by 2.25% in the third quarter of 2023, thanks to the services sector.

According to the latest data from the National Bureau of Statistics, Nigeria’s GDP grew by 2.54% (y-o-y) in real terms in the third quarter, up from 2.51% in the second quarter and 2.25% in the same period last year.

NBS said the agricultural sector’s growth rate increased by 1.30% from 1.34% in Q3 2022, while the industrial sector’s growth rate was 0.46%, an improvement from -8.00% in Q3 2022.

“In terms of percentage of GDP, the agricultural and industrial sectors contributed less to total GDP in the third quarter compared to the third quarter of 2022,” the report said.

According to an analysis of the NBS report, the growth rate of the ICT sector slowed to 6.69% in the third quarter from 8.60% in the previous quarter. Manufacturing growth was 0.48%, down from 2.20%, while trade growth was 0.89 percentage points lower than the 2.41% in the first quarter.

Reacting to the move, Dr Muda Yusuf, CEO of the Center for the Promotion of Private Enterprise, blamed high energy costs and the currency crisis for the slowdown in growth in key sectors of the economy.

“High energy costs and currency exposure are causing severe shocks to key sectors of the economy. The reforms are affecting virtually everyone,” Yusuf said.

Recall that in October, the International Monetary Fund lowered Nigeria’s 2023 economic growth forecast by 0.3 percentage points to 2.9%.

The Washington-based lender said the domestic economy will decline from 3.3% in 2022 to 2.9% in 2023 and 3.1% in 2024 as the negative impact on consumption from high inflation takes hold. Then I predicted.

In June, President Bola Ahmed Tinubu introduced the fuel subsidy removal policy, increasing fuel pump prices from 189 Naira per liter to more than 617 Naira per liter.


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