Nigeria’s economy recorded a year-on-year growth of 3.84% in real terms during the fourth quarter of 2024, according to the latest data released by the National Bureau of Statistics (NBS). This marks an improvement from the 3.46% growth rate recorded in both the fourth quarter of 2023 and the preceding quarter of 2024.
The growth was primarily driven by the Services sector, which expanded by 5.37% and contributed 57.38% to the country’s total Gross Domestic Product (GDP). In contrast, the Agriculture and Industry sectors underperformed, with growth rates of 1.76% and 2.00%, respectively.
For the full year of 2024, Nigeria’s GDP grew by 3.40%, up from 2.74% in 2023. In nominal terms, the aggregate GDP for Q4 2024 stood at N78.37 trillion, reflecting an 18.91% increase from the N65.91 trillion recorded in the same period of 2023.
Sectoral Performance Highlights
The Services sector emerged as the key driver of economic growth, with significant contributions from Financial and Insurance Services, Information and Communication (Telecoms), Trade, and Manufacturing. The Financial and Insurance sector grew by 27.78% in real terms, contributing 6.10% to GDP, while the Telecoms sector expanded by 5.90%, accounting for 17.00% of GDP.
The Trade sector recorded a modest growth of 1.19%, contributing 15.11% to GDP, while Manufacturing grew by 1.79%, though its share of GDP declined slightly to 8.07%. The Construction sector grew by 2.95%, contributing 3.44% to GDP, while the Transportation and Storage sector rebounded strongly with an 18.61% growth rate, a significant improvement from the -29.00% contraction recorded in Q4 2023.
However, the Electricity, Gas, and Steam sector continued to struggle, contracting by -5.04% and contributing only 0.49% to GDP.
Oil Sector Challenges
Despite a slight increase in average daily oil production to 1.54 million barrels per day (mbpd) in Q4 2024, up from 1.47 mbpd in Q3 2024, the Oil sector’s real GDP growth declined sharply to 1.48%, down from 12.11% in Q4 2023. The sector contributed 4.60% to GDP, a decrease from 4.70% in Q4 2023 and 5.57% in Q3 2024. For the full year, however, the Oil sector grew by 5.54%, recovering from a -2.22% contraction in 2023.
Non-Oil Sector Dominance
The Non-Oil sector remained the backbone of Nigeria’s economy, expanding by 3.96% in Q4 2024 and contributing 95.40% to GDP. This growth was driven by strong performances in Financial Services, Telecoms, Agriculture (Crop Production), Trade, and Manufacturing.
Looking Ahead
The NBS plans to unveil a rebased GDP framework starting from Q1 2025, which is expected to provide a more accurate reflection of the economy’s structure and performance. The current Q4 2024 figures were calculated using the old methodology.
The latest GDP data underscores the resilience of Nigeria’s economy, particularly the Services sector, despite challenges in the Oil and Agriculture sectors. As the country prepares for the implementation of the revised GDP framework, stakeholders remain optimistic about sustained economic growth in the coming years.
