Business and Economy

Nigeria’s GDP grew by 2.54% in the third quarter of 2023

The third quarter of 2023 saw real GDP growth of 2.54% (year over year) according to the National Bureau of Statistics (NBS). This increase is marginally greater than the 2.25 percent and 2.51 percent growth rates from the third and second quarters of 2022 and 2023, respectively.

In the third quarter of 2023, the services sector was the main factor influencing the GDP performance. With a 3.99% growth rate, the industry made up 52.70% of the GDP. The industrial sector expanded by 0.43% while the agriculture sector grew by 1.30%. Comparing the third quarter of 2023 to the same period in 2022, the industrial and agricultural sectors’ share of the GDP decreased.

The decline in the agricultural sector’s performance could be ascribed to interruptions in the production and distribution of agricultural products as a result of instability, particularly in the North. In a similar vein, the industry sector’s improvement points to a rebound but also highlights difficulties.

In addition to investing in irrigation systems, agricultural research and development, and better access to loans for farmers, the government should restore peace and security to these crisis-ridden areas. These actions will increase production in the agriculture sector. The industrial sector should concentrate its efforts on policy stability, innovation and technology adoption incentives, and infrastructural development.

Even while real GDP growth has slightly increased, it is still less than the 3.75% projected in the 2023 budget and insufficient to raise per capita income. Therefore, it is recommended that policymakers prioritize measures and programs that would promote economic expansion.

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