Nigeria’s Gross Domestic Product (GDP) grew by 3.84 per cent in real terms in the fourth quarter of 2024, marking an improvement from the 3.46 per cent recorded in the same period of 2023. The growth, driven by a strong performance in the services sector, reflects the resilience of the Nigerian economy and the gradual recovery from macroeconomic challenges.
Nigeria’s economy showed signs of resilience in the fourth quarter of 2024, with GDP growing by 3.84 per cent in real terms, according to data released by the National Bureau of Statistics (NBS). This represents an improvement from the 3.46 per cent growth recorded in both the fourth quarter of 2023 and the third quarter of 2024.
The services sector emerged as the primary driver of economic growth, expanding by 5.37 per cent and contributing 57.38 per cent to the country’s total GDP. Key industries within the sector, including financial and insurance services, information and communication (notably telecommunications), and trade, played a significant role in this performance.
Despite the overall growth, the agriculture sector recorded a slower expansion of 1.76 per cent, down from 2.10 per cent in the corresponding quarter of 2023. The industry sector also experienced a downturn, growing by 2.00 per cent, compared to 3.86 per cent in the previous year.
In nominal terms, aggregate GDP for the fourth quarter of 2024 stood at N78.37 trillion, marking an 18.91 per cent increase from N65.91 trillion recorded in the same quarter of 2023. For the full year 2024, Nigeria’s economy grew by 3.40 per cent, an improvement from the 2.74 per cent recorded in 2023, driven mainly by the non-oil sector.
The oil sector’s contribution to GDP declined slightly, accounting for 4.60 per cent in the fourth quarter of 2024, compared to 4.70 per cent in the same period of 2023 and 5.57 per cent in the previous quarter. Nigeria’s average daily crude oil production stood at 1.54 million barrels per day, a slight drop from 1.56 million barrels per day recorded in the fourth quarter of 2023 but an improvement from 1.47 million barrels per day in the third quarter of 2024.
The non-oil sector, which continues to be the major driver of economic growth, expanded by 3.96 per cent in Q4 2024, outperforming the 3.07 per cent recorded in the same quarter of 2023 and the 3.37 per cent growth seen in the previous quarter. The non-oil sector contributed 95.40 per cent to GDP, slightly above the 95.30 per cent reported in Q4 2023.
Key industries responsible for this growth include financial and insurance services, information and communication, agriculture (particularly crop production), trade, transportation and storage, and manufacturing. The financial and insurance sector was a standout performer, recording a real GDP growth rate of 27.78 per cent in Q4 2024, while the information and communication sector grew by 5.90 per cent.
Economists and members of the Organised Private Sector (OPS) have described the Q4 2024 GDP growth as a reflection of the gradual recovery of the economy and the resilience of Nigerian entrepreneurs. Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, noted that the growth highlights the need to consolidate macroeconomic stability and address productivity challenges in the real sector.
However, some experts expressed concerns about the reliance on the services sector rather than the real sector. Segun Kuti-George, National Vice President of the Nigerian Association of Small-Scale Industrialists, emphasised the importance of growth in the industrial sector for sustainable economic development.
Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry, described the 3.84 per cent growth rate as a “flat performance,” noting that Nigeria needs to achieve higher growth rates to outpace its population growth and achieve significant economic progress.
Nigeria’s GDP growth of 3.84 per cent in Q4 2024 underscores the resilience of the economy and the critical role of the services sector in driving recovery. While the growth is a positive sign, experts emphasize the need for sustained macroeconomic stability, increased investment in the real sector, and higher growth rates to ensure long-term economic prosperity. As Nigeria navigates its recovery path, addressing structural challenges and fostering inclusive growth will be key to achieving sustainable development.
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