For the full year 2024, Nigeria’s economy grew by 3.40%, an improvement from the 2.74% growth recorded in 2023, with the non-oil sector being the primary driver.
Abuja, Nigeria – Nigeria’s Gross Domestic Product (GDP) expanded by 3.84% in real terms in the fourth quarter of 2024, according to the latest report from the National Bureau of Statistics (NBS). The growth represents an improvement from the 3.46% recorded in the same period of 2023 and the third quarter of 2024.
The expansion was largely driven by the services sector, which grew by 5.37% and contributed 57.38% to the nation’s total GDP.
Sectoral Performance
Despite the overall economic growth, the agriculture sector slowed to 1.76%, down from 2.10% in Q4 2023. The industry sector also recorded weaker growth at 2.00%, compared to 3.86% in the previous year.
In nominal terms, Nigeria’s aggregate GDP for Q4 2024 stood at N78.37 trillion, reflecting an 18.91% increase from the N65.91 trillion recorded in Q4 2023.
For the full year 2024, Nigeria’s economy grew by 3.40%, an improvement from the 2.74% growth recorded in 2023, with the non-oil sector being the primary driver.
Oil Sector Performance
The oil sector’s contribution to GDP declined slightly, accounting for 4.60% in Q4 2024, down from 4.70% in the same period of 2023 and 5.57% in Q3 2024.
Nigeria’s average daily crude oil production stood at 1.54 million barrels per day (mbpd), a slight drop from 1.56 mbpd in Q4 2023 but an improvement from 1.47 mbpd in Q3 2024.
The sector recorded a real GDP growth rate of 1.48%, significantly lower than 12.11% in Q4 2023 and 5.17% in Q3 2024. However, on an annual basis, the oil sector posted a positive growth rate of 5.54%, recovering from a -2.22% contraction in 2023.
Non-Oil Sector Remains Key Growth Driver
The non-oil sector expanded by 3.96% in Q4 2024, outperforming the 3.07% recorded in Q4 2023 and 3.37% in Q3 2024. The sector accounted for 95.40% of total GDP, up from 95.30% in Q4 2023.
Key industries driving this growth include:
- Financial and insurance services
- Information and communication (notably telecommunications)
- Agriculture (particularly crop production)
- Trade
- Transportation and storage (especially road transport)
- Manufacturing
- Industry-Specific Growth Rates
- Mining and Quarrying: Grew by 2.23%, down from 8.04% in Q4 2023. Its GDP contribution fell to 4.84% from 4.91%.
- Agriculture: Growth slowed to 1.76%, with crop production accounting for 90.70% of the sector’s GDP share.
- Manufacturing: Expanded by 1.79%, up from 1.38% in Q3 2024. However, its GDP share declined to 8.07% from 8.23% in Q4 2023.
- Construction: Grew by 2.95%, slightly below the 3.70% recorded in Q4 2023.
- Trade: Recorded a 1.19% growth, down from 1.40% in Q4 2023 but better than the 0.65% seen in Q3 2024.
Financial and Communication Sectors Lead Growth
The financial and insurance sector was one of the strongest performers, posting a 27.78% growth rate, slightly lower than 29.77% in Q3 2024. Its contribution to GDP rose to 6.10%, up from 4.95% in Q4 2023.
The information and communication sector, led by telecommunications, recorded a 5.90% growth rate, slightly below 6.32% in Q4 2023. The sector’s GDP share increased to 17.00%, compared to 16.66% the previous year.
Transport and Power Sectors Show Mixed Performance
The transportation and storage sector saw a major turnaround, growing by 18.61%, reversing a -29.00% contraction in Q4 2023. It contributed 1.26% to GDP.
However, the electricity, gas, steam, and air conditioning supply sector contracted by -5.04%, a sharp decline from the 6.17% growth in Q4 2023. The sector contributed 0.49% to GDP.
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