Nigeria’s Gross Domestic Product (GDP) grew by 3.46% year-on-year in real terms during the third quarter of 2024, according to the latest report from the National Bureau of Statistics (NBS).
This marks a notable increase from the 2.54% growth recorded in the corresponding period of 2023 and an improvement from the 3.19% growth observed in the second quarter of 2024.
The growth in Q3 2024 was primarily driven by the Services sector, which expanded by 5.19% and accounted for 53.58% of the aggregate GDP. This underscores the sector’s growing importance in Nigeria’s economic landscape.
Sectoral Performance
The Services sector played a dominant role in driving the economy, contributing a larger share of the aggregate GDP compared to the same quarter in 2023. Its 5.19% growth highlights its resilience and capacity to spur overall economic performance.
- The Agriculture sector recorded a modest growth of 1.14%, slightly below the 1.30% growth reported in Q3 2023.
- The Industry sector posted a growth rate of 2.18%, showing significant improvement from the 0.46% recorded in Q3 2023.
The aggregate GDP at basic prices stood at N71.13 trillion in nominal terms in Q3 2024, reflecting a 17.26% year-on-year nominal growth from the N60.66 trillion recorded in Q3 2023.
Oil sector highlights
- Nigeria’s average daily oil production increased to 1.47 million barrels per day (mbpd) in Q3 2024, up from 1.45 mbpd in Q3 2023 and 1.41 mbpd in Q2 2024.
- The real growth of the oil sector stood at 5.17% year-on-year, marking an improvement of 6.02 percentage points from the -0.85% recorded in Q3 2023. However, this represents a decline from the 10.15% growth posted in Q2 2024.
- The oil sector contributed 5.57% to the total real GDP in Q3 2024, higher than the 5.48% recorded in Q3 2023 but lower than the 5.70% contribution in Q2 2024.
Non-Oil Sector Performance
- The non-oil sector grew by 3.37% in real terms in Q3 2024, exceeding the 2.75% growth recorded in Q3 2023 and the 2.80% growth in Q2 2024.
- The sector was buoyed by activities in financial services, telecommunications, crop production, road transport, trade, and construction.
- In real terms, the non-oil sector contributed 94.43% to Nigeria’s GDP in Q3 2024, slightly lower than the 94.52% recorded in Q3 2023 but higher than the 94.30% recorded in Q2 2024.
What you should know
- The federal government announced plans to rebase the country’s Consumer Price Index (CPI) and GDP by 2025 to enhance policy accuracy and boost investor confidence.
- According to a statement from the Ministry of Finance, the plans are being concluded with the Statistician General of the Federation, Adeyemi Adeniran, and his team.
- The Ministry noted that the rebasing effort would deliver economic benefits for the country and boost investor confidence by providing a clearer and more reliable depiction of the economy.
