Nigeria’s Gross Domestic Product (GDP) recorded a robust growth of 3.19% year-on-year in real terms during the second quarter of 2024, according to the latest report from the National Bureau of Statistics (NBS). This marks an improvement over both the 2.51% growth observed in Q2 2023 and the 2.98% growth registered in the first quarter of 2024.
The key driver of this growth was the Services sector, which expanded by 3.79% and contributed a substantial 58.76% to the total GDP. This sector’s performance was pivotal in boosting the overall economic output during the quarter. Meanwhile, the Agriculture sector grew by 1.41%, showing a slight decline from the 1.50% growth recorded in the same period last year.
The Industry sector also showed significant improvement, posting a growth rate of 3.53% in Q2 2024. This is a remarkable turnaround from the -1.94% decline experienced in Q2 2023. Both the Industry and Services sectors contributed more to the GDP in Q2 2024 compared to the same quarter in the previous year.
Oil Sector Performance
The oil sector’s contribution to the GDP in Q2 2024 was 5.70%, up from 5.34% in Q2 2023 but down from the 6.38% recorded in Q1 2024. The sector saw a notable year-on-year real growth of 10.15%, a stark contrast to the -13.43% contraction in Q2 2023. However, on a quarter-on-quarter basis, the oil sector experienced a decline, with a growth rate of -10.51% in Q2 2024.
Nigeria’s average daily oil production in the second quarter of 2024 was 1.41 million barrels per day (mbpd), which is an increase of 0.19 mbpd from the 1.22 mbpd recorded in Q2 2023. However, this figure represents a decrease from the 1.57 mbpd produced in Q1 2024.
Non-Oil Sector Performance
The non-oil sector remained the dominant contributor to Nigeria’s economy, accounting for 94.30% of the real GDP in Q2 2024. This is slightly lower than the 94.66% share recorded in the same period of 2023 but higher than the 93.62% recorded in Q1 2024.
The non-oil sector grew by 2.80% in real terms during the quarter, maintaining the same growth rate as in Q1 2024. However, this represents a slight decline from the 3.58% growth recorded in Q2 2023. Key contributors to the non-oil sector’s performance included Financial and Insurance Services, Information and Communication (particularly Telecommunications), Agriculture (specifically Crop Production), Trade, and Manufacturing (notably Food, Beverage, and Tobacco).
This continued growth in both the oil and non-oil sectors underscores Nigeria’s ongoing economic recovery and diversification efforts. As the nation navigates global economic challenges, these positive GDP figures offer a hopeful outlook for sustained economic stability and growth.
