In the third quarter of 2024, Nigeria’s GDP grew by 3.46% in real terms, an increase from the 2.54% recorded in the same period last year.
Showing improvement over the 3.19% growth seen in the second quarter of the year, the increase was primarily driven by the performance of the services sector, which contributed to the overall economic expansion.
As revealed in the latest report from the National Bureau of Statistics (NBS), the services sector grew by 5.19% in Q3 2024, accounting for 53.58% of the total GDP. The telecommunications sector, information services, and financial institutions led the growth.
These sectors have benefitted from increased demand for digital services and connectivity, as digital transformation continues to be the order of the day across the country.
In contrast, the agricultural sector saw slower growth, with a 1.14% increase in real terms, which is a slight dip from the 1.30% growth in Q3 2023. Crop production was a key contributor to food security and rural employment.
The industrial sector also recorded a stronger performance, growing by 2.18%, a rebound from the 0.46% growth in the same quarter last year.
This improvement was driven by increased activity in the mining and quarrying subsectors, particularly crude petroleum and natural gas production, alongside modest gains in manufacturing and construction.
The oil sector saw year-on-year growth of 5.17%, marking a recovery from the -0.85% contraction in Q3 2023. However, this growth was slower compared to the 10.15% posted in the previous quarter.
Nigeria’s average daily oil production increased to 1.47 million barrels per day (mbpd), up slightly from 1.45 mbpd in Q3 2023. The oil sector’s contribution to the total GDP stood at 5.57%, which is an improvement from the previous year but slightly down from Q2 2024.
In terms of nominal GDP, Nigeria’s economy reached N71.13 trillion in Q3 2024, a 17.26% increase from the N60.66 trillion recorded in the same period in 2023. This shows a combination of higher inflation and increased economic activity across various sectors.
The non-oil sector still tops Nigeria’s economy, accounting for 94.43% of GDP in Q3 2024, a slight decrease from 94.52% in the previous year but an increase from 94.30% in the second quarter.
This sector’s growth was driven by solid performances in financial services, telecommunications, agriculture, transport, trade, and construction.
The government has also outlined plans to rebase the country’s Consumer Price Index (CPI) and GDP by 2025, to improve policy formulation and boost investor confidence.
This rebase is expected to provide a more accurate reflection of Nigeria’s economic activities and support future growth.
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