In the first half of 2023, Nigeria’s dominant sectors collectively contributed N75.22 trillion, constituting 72.8% of total non-oil sector inputs, representing a modest increase of 1.6% compared to end-2022 figures of 71.2%.
This growth was mainly led by the manufacturing sector, which rose by 1.3%, to 15.1%, coupled with a strong 3.4% rise in the information and communications sector, which now stands at 14%, up from 10.6%. Construction also played a role, growing by 1.4% to 10.7% from 9.4%.
On the other hand, agriculture faced a noticeable decline of 3.7%, falling from 24.1% to 20.4%, while the trade sector witnessed a marginal decline of 0.8% to reach 12.5% from 13.3%.
Based on previous Nairametrics reports, where agriculture leads all other sectors, it has remained the major contributor to Nigeria’s nominal real GDP, despite its decline, followed by manufacturing, information and communications, trade and construction.
The 5 most important sectors and their contributions
In this report, we dive into Nigeria’s top 5 sectors and their contributions to nominal GDP for the first half of 2023.
Agriculture – 20.4%:
The agricultural sector, while still a dominant force, witnessed a notable decline in the first half of 2023. It contributed N21.04 trillion, which constitutes 20.4% of the non-oil GDP of N103.35 trillion for the period, representing a decline of 3.8% of 24.1 trillion naira. Contribution percentage in YE 2022 to 20.4%.
Within this sector, crop production played a pivotal role, accounting for 18.41 trillion naira or 87.5% of the total contribution of 21.04 trillion naira in the first half of 2023. This figure represents 43.1% of the 42.68 trillion naira generated from crop production in Yemen. 2022.
Other sub-sectors also made their mark, with livestock contributing N1.17 trillion (5.5%), forestry N196.33 trillion (0.9%), and fishing N1.27 trillion (6%) to the agricultural GDP for the first half of 2023. .
These figures also show varying levels of contribution compared to 2022 data – Livestock – 44.6% of 2.62 trillion naira, Forestry – 56.3% of 196.33 trillion naira, and Fishing 55.3% of 2.3 trillion naira.
Manufacturing – 15.1%:
In the first half of 2023, manufacturing emerged as the second largest contributor to the nominal GDP of the non-oil sector, recording 1.3% growth compared to 2022. It boosted the economy with a total contribution of N15.63 trillion.
The Nigerian industrial landscape consists of 12 distinct sub-sectors, with some clear leaders. It is worth noting that the cement, food and beverage, tobacco, textile, clothing, and footwear industries emerged, as they together accounted for 75.4% of the total value.
Food, beverages and tobacco took the lead during the first half of 2023, contributing a significant 36.3% to manufacturing value, worth N5.68 trillion.
This impressive performance represents 60.7% of the total value generated in 2022, which amounted to 9.36 trillion naira.
Following closely behind, the cement manufacturing sub-sector contributed N3.35 trillion (21.4%), with a notable share of 53.5% of the N6.26 trillion in 2022.
Textiles, clothing and footwear also had a significant impact, contributing N2.76 trillion (17.7%) of the total manufacturing value and 51.2% of the total value generated for 2022, which amounted to N5.4 trillion.
Although the other subsectors collectively accounted for 24.6% of the total value of manufacturing during the first half of 2023, it is worth noting that all of them, with the exception of oil refining, contributed more than 50% of the total value of their subsectors in 2022.
Information and communications – 14%:
Nigeria’s information and communications sector has shown remarkable performance so far during the first half of 2023, and is currently exceeding that of YE 2022. The sector has witnessed significant growth, rising by 3.4% and contributing 14% to nominal GDP, totaling N14.51 trillion. This represents 68.6% of the sector’s total contribution in 2022, worth N21.15 trillion.
The communications and information services sector remained the driving force, contributing 83.4% to the overall performance of the sector. This significant contribution amounted to 12.1 trillion naira, representing 72.1% of the total value generated in 2022, which amounted to 16.78 trillion naira.
Other noteworthy sub-sectors collectively contributed 16.6% to the overall growth of the sector. Broadcast played a pivotal role, contributing 11.1% (N1.61 trillion), accounting for 58% of the YE 2022 performance of N2.75 trillion.
Motion picture, sound recording and music production contributed 5.4% (N777.23 billion), accounting for 49% of its YE 2022 generated value of N1.59 trillion. The publication contributed a slight 0.1% (N19.39 billion), accounting for 51.3% of its YE 2022 generated value of N37.77 billion.
Trade – 12.5%:
Nigeria’s trade sector, a major contributor to the Nigerian economic landscape, contributed a significant sum of N12.95 trillion to the country’s nominal GDP during the first half of 2023, representing 12.5% of the total contribution. Although still a significant number, it reflects a modest decline of 0.8% compared to its 2022 contribution of 13.3%.
Trade activities in the first half of 2023 represented 48.7% of the total value of N26.61 trillion generated in 2022. More importantly, Nigeria’s trade balance in the first half of 2023 revealed total imports of N11.29 trillion and exports totaling N13.5 trillion, Resulting in the balance of payments. A surplus of 2.22 trillion naira.
Examining the composition of exports, crude oil exports account for 79.5% amounting to 10.73 trillion naira, while the remaining 20.5% amounting to 2.77 trillion naira is attributed to non-crude oil exports. It is worth noting that non-oil exports amounted to 1.34 trillion naira, constituting 48.4% of this category and contributing 9.9% of the total volume of exports during the first half of 2023.
Construction – 10.7%:
Nigeria’s construction sector remains a pivotal player in the country’s economic landscape, contributing 10.7%, equivalent to 11.1 trillion naira, during the first half of 2023. This growth represents a notable increase of 1.4% compared to its contribution of 9.4% in YE. 2022, equivalent to 59.3% of the total value generated, which amounted to 18.7 trillion naira during 2022.
An in-depth analysis of data released by the National Bureau of Statistics (NBS) reveals a significant boom in the construction sector, with the current average growth rate standing at 39.49%. This significant increase is in stark contrast to the average growth rate of 12.72% recorded during 2022.
This impressive growth can be attributed, in part, to ongoing inflationary pressures, with the inflation rate in the first half of 2023 standing at 22.79%, which continues to rise to reach 25.8% in August 2023. These economic dynamics underscore the importance of the construction sector in Nigeria. The ever-evolving economic landscape.
Other contributors
Aside from the previously detailed sectors, the mining and quarrying sector played an important role, contributing 6.7% to Nigeria’s economy in the first half of 2023, while the remaining sectors contributed 20.6% of the total value.
This contribution contrasts with the situation in 2022 when it was accompanied by real estate, which contributed 6.8% and 5.1% respectively, with all other sectors combined to make up the remaining 16.8%.