Nigeria’s Gross Domestic Product grew by 3.84% in real terms in the fourth quarter of 2024, reflecting an improvement from the 3.46% recorded in the same period of 2023 and a slight increase from the third quarter’s identical growth rate.
According to the latest report from the National Bureau of Statistics (NBS), the country’s economic expansion was primarily driven by the services sector, which recorded a 5.37% growth rate and accounted for 57.38% of total GDP.
“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% and contributed 57.38% to the aggregate GDP,” the report stated.
Despite the overall economic growth, some key sectors experienced mixed results.
The agriculture sector saw its growth rate decline to 1.76%, down from 2.10% in Q4 2023. Similarly, the industrial sector slowed to 2.00%, compared to 3.86% in the previous year.
However, in nominal terms, Nigeria’s total GDP for the fourth quarter of 2024 stood at N78.37 trillion, marking an 18.91% increase from the N65.91 trillion recorded in the same quarter of 2023.
For the full year 2024, the economy expanded by 3.40%, an improvement from the 2.74% growth rate in 2023, largely driven by the non-oil sector.
The contribution of the oil sector to GDP dropped slightly, accounting for 4.60% in Q4 2024, compared to 4.70% in the same period of 2023 and 5.57% in the third quarter.
Nigeria’s average daily crude oil production stood at 1.54 million barrels per day (mbpd), slightly lower than the 1.56 mbpd recorded in Q4 2023 but higher than the 1.47 mbpd in Q3 2024.
While the oil sector’s real GDP grew by 1.48% in Q4 2024, this marked a sharp decline from the 12.11% growth seen in Q4 2023 and 5.17% in Q3 2024. However, on an annual basis, the sector reported a positive growth rate of 5.54%, reversing the -2.22% contraction recorded in 2023.
The non-oil sector remained the dominant driver of Nigeria’s economic performance, expanding by 3.96% in Q4 2024. This surpassed the 3.07% growth rate in Q4 2023 and the 3.37% growth recorded in the previous quarter.
Its contribution to GDP stood at 95.40%, slightly up from 95.30% in Q4 2023. Key industries propelling this growth included financial services, telecommunications, crop production, trade, transportation, and manufacturing.
The financial and insurance sector was a standout performer, recording a 27.78% growth rate, while its GDP contribution increased to 6.10%, compared to 4.95% in Q4 2023.
The information and communication sector, largely driven by telecommunications, recorded a 5.90% growth rate, slightly below the 6.32% growth seen in Q4 2023. It accounted for 17.00% of total GDP, up from 16.66% in the previous year.
The transportation and storage sector experienced a significant rebound, expanding by 18.61% in Q4 2024, compared to a -29.00% contraction in the same quarter of 2023.
However, the electricity, gas, steam, and air conditioning supply sector faced a downturn, contracting by -5.04%, a sharp decline from the 6.17% growth recorded in Q4 2023.
The NBS report underscores the resilience of Nigeria’s non-oil sector, which continues to drive economic expansion despite challenges in the oil industry.
With steady growth in telecommunications, financial services, and transportation, experts believe the country is on track for further economic progress, provided macroeconomic stability and investment in key sectors are sustained.
