Analysis: Nigeria’s Top 5 Sectors and Their Contributions to H1 2023 Nominal GDP

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In the first half of 2023, Nigeria’s dominant sectors collectively contributed N75.22 trillion, marking a modest 1.6% increase compared to 2022 year-end figures. The growth was led by the manufacturing sector, followed by information and communication, and construction. However, agriculture and trade sectors experienced declines.

Key Points:

  • Agriculture (20.4%): Despite a 3.8% decline, agriculture remains a dominant force, contributing N21.04 trillion. Crop production played a pivotal role, accounting for 87.5% of the total contribution.
  • Manufacturing (15.1%): Manufacturing emerged as the second-largest contributor with a total contribution of N15.63 trillion. Food, beverages, and tobacco took the lead, contributing 36.3%.
  • Information and Communication (14%): This sector witnessed substantial growth, surging by 3.4%, contributing 14% to the nominal GDP, totaling N14.51 trillion. Telecommunications and information services were the driving force.
  • Trade (12.5%): Contributing N12.95 trillion, this sector accounted for 12.5% of the total contribution. There was a modest 0.8% decline compared to YE 2022.
  • Construction (10.7%): This sector contributed 10.7%, equivalent to N11.1 trillion, marking a notable increase of 1.4% compared to YE 2022.
  • Other Contributors: The mining and quarrying sector played a significant role, contributing 6.7% to Nigeria’s economy in the first half of 2023, while the remaining sectors contributed the balance 20.6% of the total value.

Analysis: The performance of Nigeria’s dominant sectors in H1 2023 reflects a mixed picture, with some sectors experiencing growth while others face challenges. Agriculture’s decline may require targeted interventions, while manufacturing and information sectors show promise.

Published by: Market News Nigeria

Nairametrics

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