Manufacturing and other sectors are impacted as the economy decelerates to its lowest point in three years.
The nation’s GDP growth dropped to 2.74% in 2023 from 3.10% in 2022, marking its slowest growth since 2020 when the economy shrank due to COVID-19.
According to the National Bureau of Statistics, both agriculture and manufacturing sectors saw reduced growth in 2023. Manufacturing grew by 1.40% in 2023, down from 2.45% in 2022, while agriculture grew by 1.13% in 2023, down from 1.88% in 2022.
In 2023, the non-oil sector grew by 3.04%,
In 2023, the non-oil sector grew by 3.04%, lower than the 4.84% in 2022, while the oil sector contracted by -2.22% compared to -19.22% in 2022. This is despite an average daily oil production of 1.55 million barrels.
The country’s GDP growth for the full year falls below global projections by the World Bank, IMF, and African Development Bank.
The World Bank forecasted a 2.9% growth for Nigeria in 2023, down from 3.3% in 2022. The IMF maintained its 3.2% growth forecast for the same year. The African Development Bank projected a slight increase to 3.1% for Nigeria’s GDP in 2023, citing uncertainties surrounding policy continuity after elections and rising insecurity as factors affecting growth prospects.
In the fourth quarter of 2023, the GDP grew by 3.46%
In the fourth quarter of 2023, the GDP grew by 3.46% compared to the same period the previous year. Both the industry and services sectors contributed more to the GDP in Q4 2023 than they did in Q4 2022. The services sector particularly drove this growth, expanding by 3.98% and contributing 56.55% to the overall GDP.
Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprise, noted that the comparison is year-on-year. He explained that during the fourth quarters of both 2022 and 2023, economic activities were affected by factors like election preparations and uncertainties, which slowed down growth.
