- Nigeria’s GDP grew by 3.46 per cent in the third quarter of 2024
- The growth is driven by the 53.58 per cent contribution of the services sector
- The non-oil sector contributed 94.43 per cent to the GDP in the quarter
Nigeria’s Gross Domestic Product (GDP) growth rate in real terms grew by 3.46 per cent in the third quarter (Q3) of 2024 on a year-on-year basis, propelled majorly by the services sector.
According to data released by the National Bureau of Statistics (NBS) on Monday, November 25, the Q3 GDP growth is 0.92 percentage points higher than the 2.54 per cent recorded in Q3 2023.
The Q3 GDP was 0.27 percentage points higher than the 3.19 per cent recorded in the second quarter (Q2) of 2024, reflecting a higher growth rate when compared to the corresponding quarter of Q3 2023 and the preceding quarter, Q2 2024.
Economic growth in Q3 2024 was driven majorly by the services sector, which grew by 5.19 per cent and contributed 53.58 per cent to the aggregate GDP.
The NBS report stated, “Nigeria’s Gross Domestic Product grew by 3.46 per cent (year-on-year) in real terms in the third quarter of 2024.
“This growth rate is higher than the 2.54 per cent recorded in the third quarter of 2023 and also surpasses the second quarter of 2024, which saw a growth of 3.19 per cent.
“The performance of the GDP in the third quarter of 2024 was mainly driven by the services sector, which recorded a growth of 5.19 per cent and contributed 53.58 per cent to the aggregate GDP.”
Sectoral performance
According to the report, the agriculture sector grew by 1.14 per cent in real terms in Q3 2024, which is less than the 1.30 per cent recorded in Q3 2023.
The industry sector grew by 2.18 per cent within the period, a significant improvement from the 0.46 per cent recorded in Q3 2023, while the services sector grew by 5.19 per cent from the 3.99 per cent recorded in Q3 2023.
When analysed by sectoral economic contributions, agriculture contributed 28.65 per cent, the industry sector contributed 17.77 per cent and the services sector recorded 53.58 per cent contribution.
On a year-on-year basis, the agriculture and industry sectors contributed less than they did in Q3 2023, with 0.66 per cent and 0.22 per cent, respectively, while the services sector had the highest contribution to the GDP in Q3 2024, surpassing its contribution in Q3 2023 by 0.88 percentage points.
Oil versus non-oil sector contribution
Economic activities when classified by oil and non-oil sector shows that the oil grew by 5.17 per cent in Q3 2024, a significant rebound from the -0.85 per cent recorded in Q3 2023, but less than the 10.15 per cent recorded in Q2 2024.
The oil sector also accounted for 5.57 per cent of the total GDP during the quarter under review, due to improved daily average oil production.
The third quarter of 2024 recorded an average daily oil production of 1.47 million barrels per day (mbpd), which is higher than the 1.45 mbpd recorded in Q3 2023 by 0.02 mbpd. It is also 0.07 mbpd higher than the production volume recorded in Q2 2023.
The non-oil sector, on the other hand, contributed 94.43 per cent in real terms to the GDP in Q3 of 2024.
The figure is a decrease on a year-on-year basis compared to the 94.52 per cent recorded in Q3 2023, but higher than the 94.30 per cent recorded in Q2 2024.
The performance of the non-oil sector in Q3 2024 is attributed to the growth recorded in some economic activities, like crop production in the agriculture sector and trade, telecommunication and real estate in the services sector.
GDP growth rate in nominal terms
The economic activity in real terms for Q3 2024 stood at N20,115,766.93, higher than the N18,285,019.24 recorded in Q2 2024 and the N19,442,281.18 recorded in the corresponding quarter Q3 2023.
The rates indicate an increased production level in Q3 2024 compared to the previous quarter of Q2 2024 and the corresponding quarter of 2023.
In nominal terms, aggregate GDP stood at N 71,131,091.07 in Q3 2024, a year-on-year nominal growth rate of 17.26 per cent compared to the N60,658,600.37 recorded in Q3 2023. This reflects the combined impact of inflation and increased economic activity across various sectors.
The nominal GDP growth rate in Q3 2024 is higher than the value of N60,930,000.58 recorded in Q2 2024.
The major contributing economic activities in real terms in Q3 2024 are crop production (26.51 per cent), trade (14.78 per cent), telecommunication (13.94 per cent), crude petroleum (5.57 per cent) and real estate (5.43 per cent).
Nigeria’s GDP growth rate from Obasanjo to Tinubu era (1999 to 2024)
Meanwhile, TheRadar reported Nigeria’s GDP experienced changes with different government administrations due to certain policies adopted by such government
Using data gathered from the NBS and media sources, TheRadar highlighted the GDP growth rate in the 25 years of unbroken democracy from 1999 to 2024 and under the five democratically elected presidents within the period.
