Food market
Nigeria’s GDP Grows 3.84% in Q4 2024, Driven by Strong Services Sector
The National Bureau of Statistics (NBS) reported on Tuesday that Nigeria’s Gross Domestic Product (GDP) grew by 3.84% year-on-year in real terms during the fourth quarter of 2024.
This growth rate surpassed the 3.46% recorded in both the fourth quarter of 2023 and the third quarter of 2024.
The Services sector emerged as the primary driver of economic growth, expanding by 5.37% and contributing 57.38% to the overall GDP.
According to Prince Adeyemi Adeniran, Statistician General of the Federation and CEO of the NBS, the sector’s performance underscored its continued role as the economy’s main engine.
On a quarter-on-quarter basis, real GDP increased by 10.99% in Q4 2024, reflecting higher production levels compared to Q3 2024.
The estimated economic activity in real terms for Q4 2024 stood at ₦22,610,393.45 million, exceeding the figures for Q3 2024 (₦20,115,766.93 million) and Q4 2023 (₦21,773,263.25 million).
For the full year 2024, Nigeria’s annual GDP growth rate reached 3.40%, up from 2.74% in 2023. However, the agriculture and industry sectors experienced declines in 2024, while the Services sector showed improvement.
In nominal terms, aggregate GDP for Q4 2024 stood at ₦78,374,120.95 million, reflecting an 18.91% year-on-year nominal growth rate. This was higher than the ₦65,908,258.59 million recorded in Q4 2023 and the ₦71,131,091.07 million in Q3 2024.
Oil and Non-Oil Sector Performance
The oil sector grew by 1.48% in Q4 2024, a significant decline compared to the 12.11% growth in Q4 2023 and the 5.17% growth in Q3 2024. The sector contributed 4.60% to GDP during the quarter. Annual oil GDP growth for 2024 was 5.54%, a notable improvement from the -2.22% recorded in 2023. The oil sector’s contribution to GDP in 2024 stood at 5.51%, up from 5.40% in 2023.
Average daily oil production in Q4 2024 was 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.
In contrast, the non-oil sector contributed 95.40% to GDP in Q4 2024, up from 95.30% in Q4 2023 and 94.43% in Q3 2024. Key drivers of non-oil sector growth included Rail Transport & Pipelines, Metal Ores, Financial Institutions, Road Transport, Quarrying & Other Minerals, and Insurance.
On an annual basis, the non-oil sector grew by 3.27% in 2024, compared to 3.04% in 2023. However, its aggregate contribution to GDP slightly decreased to 94.49% in 2024 from 94.60% in 2023.
Overall, the data highlights a stronger economic performance in 2024, driven by the Services sector and improved non-oil activities, despite challenges in the oil sector.
About The Author
