Oil revenue contributes less than non-oil sector
By Jeph Ajobaju, Chief Copy Editor
Oil is still the backbone of Nigeria’s economy but its declining trajectory is highlighted by a mere 5.66 per cent it contributed to total real Gross Domestic Product (GDP) in the third quarter of the year ended September 2022 (Q3 2022).
On the other hand, non-oil sector contribution is growing even though it is a long way from fully relegating the liquid gold to the back burner.
Latest data released by the National Bureau of Statistics (NBS) shows the input of oil to GDP is down from 7.49 per cent in Q3 2021 and 6.33 per cent in Q2 2022.
The report said Nigeria recorded an average daily oil production of 1.20 million barrels per day (mbpd) in Q3/2022, lower than 1.57 mbpd in Q3 2021 and 1.43 mbpd in Q2 2022.
Oil industry real growth was -22.67 per cent year-on-year (YoY) in Q3 2022, a dip of 11.94 percentage points versus Q3 2021 and -11.77 per cent compared with 10.91 in Q2 2022.
Quarter-on-quarter (QoQ), it grew -1.80 per cent in Q3 2022.
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Onslaught against oil theft
Oil theft continued in Q3/2022 but the Nigerian National Petroleum Company (NNPC) has launched an offensive against the crime, which raised output in October above September and August 2022, per Nairametrics.
The NBS said the contribution of electricity, gas, steam, and air conditioning supply to nominal GDP in Q3/2022 was 0.72 per cent, lower than 0.86 per cent in Q3 2021 and 1.39 per cent in Q2/2022.
In real terms, the sub-sector grew -3.56 per cent in Q3/2022, a decline from 14.36 per cent in Q3 2021, but a 7.92 points rise on -11.48 per cent in Q2 2022.
Power supply dropped to 6.52 per cent between September and October 2022.
It was 86,222 megawatts per hour (MW/h) in July, 93,184 MW/h (August), and 94,557 MW/h (September).