The Nigerian economy has suffered significant setbacks as twenty-six sectors recorded contraction in the second quarter of 2023. A comprehensive analysis of Gross Domestic Product (GDP) data by the Nigerian Bureau of Statistics (NBS) shows that the food, textile and 24 other sectors collectively lost over N1 trillion in economic value during the period.
The combined contribution of these sectors to real GDP fell from N7.69 trillion in the first quarter of 2023 to N6.54 trillion in the second quarter, a staggering loss of N1.16 trillion. Sectors that experienced contraction include fishing, petroleum and natural gas, cement, food, beverages and tobacco, textiles, clothing and footwear, wood and wood products, pulp, paper and paper products, non-metallic mineral products, basic metals, iron and steel, motor vehicles and assembly, other manufacturing, construction, accommodation and food services, road transport and air transport.
In addition, several other sectors were adversely affected, including post and courier services, publishing, motion picture, sound recording and music production, arts, entertainment and recreation, financial institutions, real estate, professional, scientific and technical services, education, other services, metal ores and plastic and rubber products.
The latest GDP results released by the NBS show a marginal increase in real GDP of 0.20 percentage points, reaching 2.51% in the second quarter of 2023, compared to 2.31% in the first quarter. However, this growth rate remains lower than the 3.54% recorded in the same period last year. The NBS attributed the slower growth to the prevailing difficult economic conditions.
The Nigerian economy continues to navigate through complexities that have affected its growth trajectory, underscoring the need for comprehensive policies and strategic interventions to address sector-specific challenges and promote sustainable economic recovery.
