In the third quarter, Nigeria’s economic performance demonstrated stagnation, as indicated by recent data. This observation stems from a moderated contraction in the oil sector, coupled with the delayed realization of the anticipated benefits from governmental reforms geared towards enhancing overall output.
The largest economy in Africa experienced a growth of 2.54% in the third quarter, a modest increase from the 2.51% reported in the preceding quarter. However, this falls considerably short of President Bola Tinubu’s stated objective to achieve a minimum annual economic expansion of 6%, a commitment articulated during his inauguration in May.
Tinubu has pledged to remove impediments to investment, foster job creation, and address security challenges. Undertaking some of Nigeria’s most ambitious reforms in years, he aims to stimulate output in a nation that has grappled with sluggish economic growth for nearly a decade. Despite these endeavors, the anticipated impact on growth is yet to materialize.
According to the National Bureau of Statistics (NBS), the third-quarter GDP performance in 2023 was predominantly influenced by the services sector, showcasing a notable growth of 3.99%. This sector contributed significantly, accounting for 52.7% of the overall GDP.
In the third quarter, Nigeria’s pivotal oil sector, constituting a substantial portion of government revenue and 90% of foreign exchange reserves, experienced a contraction of 0.85%. This marked an increase of 12.6% from the second quarter, during which the sector had contracted by 13.43%.