Dear All,
The Gross Domestic Product (GDP) statistics recently released by the National Bureau of Statistics (NBS) reveal total real GDP to have expanded by 2.31%YoY in Q1:2023, standing at NGN17.75trn, (from NGN17.35trn in Q1:2022). This also represents a slower growth compared to the preceding and corresponding quarter last year (Q4:2022- 3.52% and Q1:2022- 3.11%), respectively. Alongside other macroeconomic difficulties (like FX scarcity and election-related uncertainties), cash scarcity in the quarter was a major factor impacting this slower growth. The non-oil sector felt the brunt of these issues the most as its growth rate declined to 2.77% (its lowest since Q2:2021). On the other hand, while the oil sector remained in contraction (-4.21%YoY), real oil GDP growth improved from -26.04% in Q1:2022 and represents the sector’s best outing in 8 quarters. The key contributors to GDP growth include Information & Telecommunication sector- ICT (c.72%), financial services (c.42%), trade (c 9%), and Manufacturing (c. 7%).
