Connect with us

Business

Cash Crunch Slows Nigeria’s Q1 2023 Growth

Published

on

 

According to the National Bureau of Statistics, Nigeria experienced a slowdown in economic growth during the first quarter of 2023.

 

The Gross Domestic Product (GDP) recorded a year-on-year growth of 2.31 percent within the quarter.

 

This information was stated in the “Nigerian Gross Domestic Product Report Q1 2023″ released on Wednesday by the statistics bureau.

 

The report highlighted that this growth rate declined compared to the first quarter of 2022, which saw a growth rate of 3.11 percent, as well as the fourth quarter of 2022, which had a growth rate of 3.52 percent.

 

The NBS attributed this reduction in growth to the adverse effects of the cash crunch experienced during the quarter.

 

According to the report, the performance of the GDP in the first quarter of 2023 was driven mainly by the services sector, which recorded a growth of 4.35 per cent and contributed 57.29 per cent to the aggregate GDP.

 

The bureau said the agriculture sector grew by -0.90 per cent, lower than the growth of 3.16 per cent recorded in the first quarter of 2022.

 

The NBS said although the growth of the industry sector improved to 0.31 per cent relative to -6.81 per cent recorded in the first quarter of 2022, agriculture and industry sectors contributed less to the aggregate GDP in the quarter under review compared to the first quarter of 2022.

 

According to the report, in the quarter under review, aggregate GDP stood at N51.24 trillion in nominal terms.

 

This performance is higher when compared to the first quarter of 2022 which recorded aggregate GDP of N45.3 trillion, indicating a year-on-year nominal growth of 13.07 per cent.

 

According to the National Bureau of Statistics, Nigeria recorded an average daily oil production of 1.51 million barrels per day (mbpd) during the first quarter of 2023.

 

This figure is higher compared to the daily average production of 1.49 mbpd in the same quarter of 2022, and it exceeds the production volume of 1.34 mbpd in the fourth quarter of 2022 by 0.17 mbpd.

 

It reported that  the real growth of Nigeria’s oil sector in the first quarter of 2023 was -4.21 percent year-on-year. This indicates an increase of 21.83 percentage points compared to the growth rate recorded in the corresponding quarter of 2022, which was -26.04 percent.

 

Furthermore, the NBS stated that the growth rate in the oil sector increased by 9.18 percentage points when compared to the previous quarter, Q4 2022, which had a growth rate of -13.38 percent.

 

The report said “On a quarter-on-quarter basis, the oil sector recorded a growth rate of 20.68 per cent in Q1 2023.

 

“The oil sector contributed 6.21 per cent to the total real GDP in Q1 2023, down from the figure recorded in the corresponding period of 2022 and up from the preceding quarter, where it contributed 6.63 per cent and 4.34 per cent respectively.”

 

According to the National Bureau of Statistics, the non-oil sector experienced a real growth rate of 2.77 percent during the first quarter of 2023. However, this rate was lower by 3.30 percentage points compared to the growth rate recorded in the same quarter of 2022.

 

Additionally, it was 1.67 percentage points lower than the growth rate in the fourth quarter of 2022.

 

“This sector was driven in the first quarter of 2023 mainly by information and communication (telecommunication), financial and insurance (financial institutions), trade, manufacturing (food, beverage and tobacco), construction, and transportation and storage (road transport), accounting for positive GDP growth.

 

“In real terms, the non-oil sector contributed 93.79 per cent to the nation’s GDP in the first quarter of 2023, higher than the share recorded in the first quarter of 2022 which was 93.37 per cent and lower than the fourth quarter of 2022 recorded as 95.66 per cent,” it said.

1 Comment
0 0 votes
Article Rating
Subscribe
Notify of
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
rkk42
5 months ago

977309 18789you got a extremely excellent internet site, Sword lily I discovered it via yahoo. 243409

Business

Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd

Published

on

Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.

The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.

Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.

According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.

ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months

The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.

Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.

She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.

The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.

The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.

Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.

Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.

The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.

It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.

Continue Reading

Business

FHC Orders NUPRC to Comply with PIA

Published

on

Continue Reading

Business

Local Firms Lead Revival of Idle Oil Wells – SPE

Published

on

Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products

Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

1
0
Would love your thoughts, please comment.x
()
x