The Nigerian economy grew by 2.5 percent y/y in 2Q23, lower than the 3.5 percent y/y recorded in 1Q22 and 2.3 percent y/y in 1Q23.
The performance was driven mainly by the services sector, which recorded a growth of 4.4 percent y/y and contributed 58.42 percent to the aggregate GDP. Meanwhile, the agriculture sector grew by 1.5 percent y/y, after contracting by 0.9 percent in 1Q23 and also showed improvement from growth of 1.2 percent in 2Q22. The laggard was the industry sector, contracting by 1.9 percent y/y relative to 0.3 percent growth in 1Q23 and -2.3 percent in 2Q22.
Notably, growth came in lower than the 2.8 percent Bloomberg consensus expectation. The oil sector contracted even further in 2Q23 (-13.4 percent), indicating a decrease of 1.7 percent relative to the rate recorded in the corresponding quarter of 2022 (-11.7 percent). According to the report, the second quarter of 2023 recorded an average daily oil production of 1.22 million barrels per day (mbpd), 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 1.51mbpd by 0.29mbpd.