Nigeria: GDP growth records slowest increase since Q1 2021 in Q3
The Nigerian economy lost steam in the third quarter of 2022: GDP growth moderated to 2.2% year on year, from 3.5% in the second quarter. Q3’s reading marked the softest expansion since Q1 2021.
The annual deceleration was chiefly due to the key oil sector continuing to drag on overall growth. It plunged a whopping 22.7% in Q3 (Q2: -11.8% yoy). Oil production fell to 1.20 million barrels per day (mbpd) in Q3 from 1.43 mbpd in Q2. The sector continues to suffer from security issues related to theft and lingering instability in the Niger Delta.
The non-oil sector of the economy continued to be the engine of growth—as it has been since late 2020. Growth in this sector eased to 4.3% in Q3 (Q2: +4.8% yoy). The industrial sector posted an 8.0% year-on-year contraction in Q3 (Q2: -2.3% yoy), marking the worst reading since Q2 2020. More positively, services sector growth increased to an annual 7.0% in the third quarter, accelerating from the second quarter’s 6.7% increase. Additionally, the agricultural sector gained steam, growing 1.3% in Q3 (Q2: +1.2% yoy).