Nigeria’s oil sector records -0.85% growth in Q3/2023

Nigeria’s oil sector grew -0.85% in Q3/2023. This is according to the Gross Domestic Product (GDP) report recently released by the National Bureau of Statistics (NBS).  The report highlights the fact that in the third quarter of 2023 (Q3/2023), the growth rate in the oil sector was -0.85 percent year-on-year in Q3 2023.

However, what may seem like a decline is an improvement from what the oil sector growth rate was in the corresponding quarter of 2022 as well as the previous quarter (Q2/2023).  

In Q3/2022, the oil sector growth rate was -22.67 percent. Also, compared to the previous quarter (Q2/2023), which was -13.43 percent, there was a positive increase of 12.58 percent points.

A part of the report stated, the real growth of the oil sector was -0.85 percent (year-on-year) in Q3 2023, indicating an increase of 21.83 percent points relative to the rate recorded in the corresponding quarter of 2022 (-22.67 percent).

Growth also increased by 12.58 percent points when compared to Q2 2023 which was -13.43 percent. On a quarter-on-quarter basis, the oil sector recorded a growth rate of 12.47 percent in Q3 2023.

According to the GDP report, Nigeria’s oil industry showed some improvements in production. The average daily oil output was 1.45 million barrels per day (mbpd), which was higher compared to both the same period in 2022, which was 1.20 mbpd, and the second quarter of 2023, which was 1.22 mbpd.

This increase in production was by 0.25 mbpd from last year’s Q3 and by 0.23 mbpd from Q2 this year.

Looking specifically at the quarter-by-quarter performance, the oil sector in Q3 2023 experienced a growth rate of 12.47 percent. This means it saw a good expansion compared to the previous quarter.

Meanwhile, in terms of its contribution to the total real GDP, the oil sector contributed 5.48 percent in Q3 2023.  

This is slightly lower than what it contributed to the country’s GDP in the same period of 2022 but higher than what it contributed in the previous quarter of 2023.

Specifically, it contributed 5.66 percent in the corresponding quarter of 2022 and 5.34 percent in the preceding quarter.

Overall, while there were fluctuations in the oil sector’s performance, there was a noticeable increase in production and a positive trend in growth rates, showcasing some improvements in this industry.