Nigeria’s GDP expanded by 2.51% in Q2 2023

Nigeria’s GDP (Gross Domestic Product) increased 2.51% (year over year) in real terms in the second quarter (Q2) of 2023, according to the National Bureau of Statistics (NBS).

The services sector, which achieved a growth rate of 4.42 percent in the time period and contributed 58.42 percent to the total GDP, is the main driver of this growth rate, which is lower than the 3.54% registered in the Q2 2022.

In a similar vein, the agricultural sector expanded by 1.50%, up from 1.20% in Q2 2022. However, the industry sector saw a relative decrease in growth of 1.94%, matching the -2.30% decline seen in Q2 2022.

Agriculture and industry sectors contributed less to the total GDP in Q2 2023 compared to Q2 2022 in terms of their percentage of the GDP. To encourage Nigeria’s economy to thrive sustainably, the government must act decisively.

The government should place a high priority on economic diversification, investing in industries other than oil, like boosting agricultural output through the use of modern technologies and giving farmers access to fertiliser and improved seedlings. Infrastructure development is essential for lowering corporate costs and luring investments into the nation, especially in the transportation and energy sectors.

Given that human capital is a key economic activity driver, investing in education and skill development will empower the labour force and boost growth in the services sector.

Additionally, creating an environment that is favourable to investors through regulatory changes and initiatives to make conducting business easier is essential for luring both domestic and foreign capital. This will improve public-private sector cooperation, which is essential for realising Nigeria’s economic potential and enhancing the standard of living for its citizens.