Nigeria’s economy witnessed significant growth in the third quarter of 2024, with a 3.46% year-on-year GDP increase, surpassing the 2.54% recorded in Q3 2023 and the 2.8% growth in Q2 2024. The latest figures, released by the Statistician-General of the Federation, Adeyemi Adeniran Adedeji, revealed the services sector as the key driver of this performance.
- Total GDP: ₦20.15 trillion, up from ₦18.30 trillion in Q2 2024 and ₦19.44 trillion in Q3 2023.
- Nominal GDP: ₦71.13 trillion, reflecting a 17.26% year-on-year growth from ₦60.66 trillion in Q3 2023.
Sectoral Contributions
- Services Sector
- Growth: 5.19%
- Contribution: 53.58% of total GDP
- The services sector emerged as the largest contributor, reflecting its resilience and pivotal role in driving economic recovery.
- Oil Sector
- Growth: 5.17% year-on-year, recovering from a -0.85% decline in Q3 2023.
- Average Daily Production: 1.47 million barrels per day (mbpd), slightly above 1.45 mbpd in Q3 2023.
- Contribution: 5.57% to real GDP, showing steady improvement despite fluctuating global oil prices.
- Non-Oil Sector
- Growth: 3.37%, higher than Q3 2023 (2.75%) and Q2 2024 (2.80%).
- Contribution: 94.43% of GDP, driven by financial services, telecommunications, agriculture, transportation, trade, and construction.
Driving Forces Behind Growth
- Services Sector: Financial institutions and telecommunications spearheaded growth, emphasizing the digital transformation in Nigeria’s economy.
- Agriculture: Crop production remained a consistent growth contributor, showcasing the sector’s resilience.
- Trade and Construction: Improved logistics and increased construction activities bolstered economic activities.
Despite the impressive growth figures, challenges like inflation, fluctuating oil revenues, and the naira’s devaluation continue to pressure the economy. However, the positive trends in the non-oil sector provide a roadmap for diversification and sustainable growth.
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