According to recent data released on Wednesday, Nigeria experienced a deceleration in its annual economic growth rate, which stood at 2.3% during the first quarter. This decline can be attributed to a government initiative aimed at replacing outdated banknotes with newly crafted ones, resulting in trade and payment disruptions across the country.
Hours before the central bank’s interest rate announcement and the upcoming inauguration of President-elect Bola Tinubu, crucial data on Nigeria’s gross domestic product (GDP) was released. This timely information highlights the importance of economic indicators as the country prepares for the next phase of leadership under President-elect Tinubu, who has made a firm commitment to reinvigorate and stimulate growth within the nation.
Following a severe recession in 2020 caused by the global COVID-19 pandemic, Africa’s largest economy has showcased a remarkable streak of growth, extending for 10 consecutive quarters. This notable achievement reflects the resilience and tenacity of the nation’s economy as it navigates through challenging times, emphasizing its ability to rebound and recover from the adverse impacts of the pandemic.
According to the National Bureau of Statistics (NBS), the growth observed in the first quarter was primarily propelled by the services sector, which experienced a noteworthy year-on-year growth rate of 4.4%. On the other hand, the oil sector, which holds significant importance as it contributes approximately two-thirds of government revenue and 90% of foreign-exchange reserves, faced a contraction of 4.2%. These figures demonstrate the divergent performance of key sectors within Nigeria’s economy during the specified period, highlighting the varying dynamics and impact on overall economic growth.
During the first quarter, Nigeria recognized as Africa’s leading oil producer, achieved an average daily oil output of 1.51 million barrels per day (mbd), marking a slight increase from the daily average of 1.49 mbpd recorded in the corresponding quarter of the previous year (2022). This data signifies the country’s consistent production levels in the oil sector, underscoring its continued significance in the regional and global energy landscape.