Nigeria’s economy recorded a 3.46% growth in Gross Domestic Product (GDP) during the third quarter of 2024, marking a steady improvement from the 2.54% growth recorded in the same period of 2023 and 3.19% in the second quarter of this year.
The National Bureau of Statistics (NBS) revealed the data in its latest GDP report released on Monday, highlighting a robust performance across key sectors, particularly oil, services, and agriculture.
“Nigeria’s Gross Domestic Product grew by 3.46% (year-on-year) in real terms in the third quarter of 2024,” the report stated. “This growth rate is higher than the 2.54% recorded in Q3 2023 and also surpasses the 3.19% growth in Q2 2024.”
Oil Sector Rebounds Strongly
The oil sector played a critical role in driving the growth, rebounding with a real growth rate of 5.17% in Q3 2024. This marks a sharp recovery from a contraction of -0.85% recorded in the same quarter last year.
Average daily oil production rose to 1.47 million barrels per day (mbpd), an increase from 1.45 mbpd in Q3 2023 and 1.41 mbpd in Q2 2024. The sector contributed 5.57% to the GDP, reflecting its ongoing importance to the Nigerian economy despite diversification efforts.
Non-Oil Sector Continues to Dominate
The non-oil sector, which accounted for 94.43% of GDP, achieved a growth rate of 3.37% in Q3 2024. Key contributors included financial institutions, telecommunications, agriculture, transportation, and construction, highlighting the success of diversification efforts.
The services sector emerged as the largest contributor, growing by 5.19% and accounting for 53.58% of the total GDP. Telecommunications and information services played a pivotal role in this growth, driven by rising digitalization and increasing demand for connectivity. Financial institutions also reported strong performance, further bolstering the sector.
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Agriculture and Industry Make Modest Gains
The agriculture sector recorded a modest real growth of 1.14%, slightly below the 1.30% recorded in Q3 2023. Crop production remained the dominant driver, emphasizing its importance in ensuring food security and providing rural employment.
The industrial sector grew by 2.18%, a significant recovery from the 0.46% growth recorded in the same quarter of 2023. The mining and quarrying sub-sector, supported by crude petroleum and natural gas, was the standout performer, with moderate gains in manufacturing and construction also contributing.
Nominal GDP Highlights Economic Activity
In nominal terms, Nigeria’s GDP for Q3 2024 stood at N71.13 trillion, a 17.26% increase from N60.66 trillion in Q3 2023. This reflects the combined impact of inflation and increased economic activity across various sectors.
Expert Opinions
Economic analysts praised the improved performance but stressed the need for sustained efforts to maintain growth. “The rebound in the oil sector and the resilience of the non-oil sector show that the economy is on a positive trajectory,” one analyst remarked. “However, addressing inflation and enhancing productivity in critical sectors like agriculture remain essential for long-term stability.”
With the Nigerian economy showing resilience and growth across multiple sectors, stakeholders are optimistic about the nation’s economic prospects heading into the final quarter of 2024.