- Nigeria’s Gross Domestic Product increased to 3.84 per cent in the fourth quarter of 2024
- The growth was driven by the services sector, which recorded a 5.37 per cent growth rate and accounted for 57.38 per cent of the total GDP
- The oil and non-oil sectors contributed 4.60 per cent and 95.40 per cent, respectively to the GDP
Nigeria’s Gross Domestic Product (GDP) increased by 3.84 per cent in real terms in the fourth quarter (Q4) of 2024, driven by the services sector.
The Q4 GDP figure is an increase from the 3.46 per cent recorded in the same period of 2023, and from the previous quarter, which recorded an identical 3.46 per cent growth rate.
According to the data released by the National Bureau of Statistics (NBS) on Tuesday, February 25, the expansion is largely due to the performance of the services sector, which recorded a 5.37 per cent growth rate and accounted for 57.38 per cent of the country’s total GDP.
“Nigeria’s Gross Domestic Product grew by 3.84 per cent (year-on-year) in real terms in the fourth quarter of 2024.
“This growth rate is higher than the 3.46 per cent recorded in the fourth quarter of 2023 and the third quarter of 2024 growth rate (approximately 3.46 per cent).
“The performance of the GDP in the fourth quarter of 2024 was driven mainly by the Services sector, which recorded a growth of 5.37 per cent and contributed 57.38 per cent to the aggregate GDP,” the report stated.
In nominal terms, aggregate GDP for Q4 2024 stood at N78.37 trillion, representing an 18.91 per cent increase from N65.91 trillion recorded in the same quarter of 2023.
For the full year 2024, the economy grew by 3.40 per cent, up from the 2.74 per cent recorded in 2023, driven mainly by the non-oil sector.
Industrial performance and contribution to GDP
The data shows that the agriculture sector recorded a decline to 1.76 per cent from 2.10 per cent in the corresponding quarter of 2023, despite overall economic growth.
The industry sector also experienced a decline as it grew by 2.00 per cent, lower than the 3.86 per cent recorded in 2023.
Oil sector contributed 4.60 per cent to total GDP
The oil sector contributed 4.60 per cent to the GDP in Q4 2024, indicating a decline compared to 4.70 per cent recorded in the same period of 2023 and 5.57 per cent recorded in the third quarter (Q3) of 2024.
The country’s average daily crude oil production stood at 1.54 million barrels per day (bpd), a year-on-year decrease compared to 1.56 million bpd recorded in Q4 2023 but an increase from 1.47 million bpd recorded in Q3 2024.
The data shows that the oil sector recorded a real GDP growth rate of 1.48 per cent, significantly lower than the 12.11 per cent recorded in Q4 2023 and the 5.17 per cent recorded in Q3 2024.
However, on an annual basis, the oil sector reported a positive growth rate of 5.54 per cent, contrasting with the -2.22 per cent contraction recorded in 2023.
On the other hand, the non-oil sector expanded by 3.96 per cent in Q4 2024, an increase from the 3.07 per cent recorded in Q4 2023 and the 3.37 per cent growth seen in Q3 2024.
The non-oil sector continues to be the major driver of economic growth as it contributed 95.40 per cent to the GDP, a slight increase from the 95.30 per cent reported in Q4 2023.
Non-oil industry responsible for increased GDP growth
The key industries under the non-oil sector driving economic growth include financial and insurance services, information and communication (notably telecommunications), agriculture (particularly crop production), trade, transportation and storage (especially road transport), and manufacturing.
The mining and quarrying sector, which includes crude petroleum, natural gas, and solid minerals, recorded a real GDP growth of 2.23 per cent, a significant decrease from the 8.04 per cent recorded in Q4 2023.
The sector’s contribution to GDP stood at 4.84 per cent, down from 4.91 per cent recorded in Q4 2024.
The agriculture sector experienced a slow real GDP growth of 1.76 per cent, compared to 2.10 per cent in Q4 2023, with crop production accounting for 90.70 per cent of the sector’s contribution to the GDP.
The manufacturing sector recorded a real GDP growth rate of 1.79 per cent in Q4 2024, up from 1.38 per cent in q3 2024.
The sector however contributed 8.07 per cent to the GDP from 8.23 per cent in Q4 2023.
The construction sector grew by 2.95 per cent, slightly lower than the 3.70 per cent recorded in Q4 2023, contributing 3.44 per cent to GDP, compared to 3.47 per cent in Q4 2023.
The trade sector recorded a real GDP growth of 1.19 per cent, down from 1.40 per cent in Q4 2023 but an improvement from the 0.65 per cent posted in Q3 2024, and accounted for 15.11 per cent of total economic output in Q4 2024.
Performance of financial, insurance, ICT, and transportation sectors
The financial and insurance sector recorded a real GDP growth rate of 27.78 per cent in Q4 2024, a decline from the 29.77 per cent recorded in Q3 2024.
The sector contributed 6.10 per cent to the GDP, an increase from 4.95 per cent recorded in Q4 2023.
The information and communication sector’s growth was largely driven by telecommunications. The sector recorded a real GDP growth of 5.90 per cent below the 6.32 per cent recorded in Q4 2023.
The sector accounted for 17.00 per cent of total GDP, up from 16.66 per cent in the previous year.
The transportation and storage sector recorded a huge growth of 18.61 per cent in Q4 2024 in contrast to the -29.00 per cent contraction recorded in Q4 2023.
The sector’s share of the GDP stood at 1.26 per cent, while its contribution to the GDP stood at 0.49 per cent.
The electricity, gas, steam, and air conditioning supply sector contracted by -5.04 per cent in real terms, a sharp decline from the 6.17 per cent growth recorded in Q4 2023.
World Bank projects 3.6% GDP growth in 2025, 2026, inflation decline in Nigeria
Meanwhile, TheRadar earlier reported that the World Bank projected that Nigeria’s economy will grow by 3.6 per cent in 2025 and 2026 due to expected economic stability following ongoing reforms by the Federal Government.
This was contained in the Global Economic Prospects, January 2025 report of the World Bank published on Thursday, January 16.
