Services sector lead as Nigeria’s economy expands by 3.46% in Q3 2024

Nigeria’s Gross Domestic Product (GDP) grew by 3.46% year-on-year in real terms during the third quarter of 2024, reflecting steady economic recovery and improved sectoral performance.

This marks a significant increase from the 2.54 per cent growth recorded in Q3 2023 and shows progress from the 3.19 per cent growth seen in the previous quarter, according to the latest report by the National Bureau of Statistics (NBS).

The Services sector spearheaded the economic expansion with a robust 5.19% growth, accounting for 53.58% of Nigeria’s aggregate GDP. This marks a growing reliance on services as a cornerstone of economic activity, emphasizing its resilience and importance in driving overall performance.

The sector’s contribution exceeded its share in the corresponding period of 2023, underscoring its pivotal role in Nigeria’s economic structure.

The Agriculture sector, however, posted a modest growth of 1.14%, slightly trailing the 1.30% growth seen in Q3 2023. Industry showed a marked improvement, growing by 2.18%, a significant rise from the 0.46% growth recorded in the same period last year.

In nominal terms, the aggregate GDP at basic prices stood at N71.13 trillion, reflecting a 17.26% year-on-year nominal growth from the N60.66 trillion recorded in Q3 2023.

Nigeria’s daily oil production rose 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.

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This contributed to a 5.17% year-on-year growth in the oil sector, reversing the -0.85% decline recorded in Q3 2023. However, the figure fell short of the 10.15% growth posted in Q2 2024.

The oil sector contributed 5.57% to the total real GDP, slightly higher than its 5.48% share in Q3 2023 but lower than its 5.70% share in Q2 2024.

The non-oil sector remained dominant, growing by 3.37% year-on-year, outperforming the 2.75% growth recorded in Q3 2023 and the 2.80% growth in Q2 2024. Key contributors included financial services, telecommunications, crop production, trade, road transport, and construction.

The non-oil sector accounted for 94.43% of Nigeria’s GDP in Q3 2024, slightly below its 94.52% share in Q3 2023 but higher than the 94.30% recorded in Q2 2024.

The federal government has announced plans to rebase the Consumer Price Index (CPI) and GDP by 2025.

According to the Ministry of Finance, the initiative aims to enhance economic policy precision and investor confidence.

Statistician General of the Federation Adeyemi Adeniran and his team are finalizing the effort, which is expected to provide a clearer depiction of the economy’s structure and unlock growth opportunities.

Economic analysts suggest the planned rebasing could improve Nigeria’s investment climate by aligning metrics with current realities, offering a more accurate framework for fiscal and monetary policies.