Nigeria’s Gross Domestic Product (GDP) grew by 3.84% in real terms during the fourth quarter of 2024, marking an improvement from the 3.46% recorded in the same period in 2023. This also represented a slight increase from the previous quarter’s growth of 3.46%.
The National Bureau of Statistics (NBS) attributes the growth to strong performance in the services sector, which saw a 5.37% growth and accounted for 57.38% of the country’s total GDP.
The report stated: “Nigeria’s GDP grew by 3.84% (year-on-year) in real terms in Q4 2024, surpassing the 3.46% recorded in Q4 2023 and the 3.46% growth from Q3 2024. The GDP performance was primarily driven by the services sector, which expanded by 5.37% and contributed 57.38% to the overall GDP.”
However, the agriculture sector grew at a slower pace of 1.76%, compared to 2.10% in the same quarter of 2023. The industry sector also faced a decline, with growth dropping to 2.00%, down from 3.86% the previous year.
In nominal terms, the GDP for Q4 2024 stood at N78.37 trillion, reflecting an 18.91% increase from N65.91 trillion in Q4 2023.
For the full year 2024, Nigeria’s economy grew by 3.40%, an improvement from 2.74% in 2023, largely driven by the non-oil sector. The oil sector’s contribution to GDP declined slightly, accounting for 4.60% of the total in Q4 2024, down from 4.70% in the same period in 2023.
Nigeria’s average daily crude oil production was 1.54 million barrels per day (mbpd) in Q4 2024, slightly lower than the 1.56 mbpd recorded in Q4 2023 but an improvement from 1.47 mbpd in Q3 2024. The oil sector saw a growth rate of 1.48%, a sharp drop from the 12.11% in Q4 2023.
The non-oil sector remains the main driver of economic growth, expanding by 3.96% in Q4 2024, compared to 3.07% in Q4 2023 and 3.37% in the previous quarter. The non-oil sector accounted for 95.40% of GDP, slightly up from 95.30% in Q4 2023.
Key sectors contributing to this growth include financial and insurance services, telecommunications, agriculture (particularly crop production), trade, transportation, and manufacturing.
The mining and quarrying sector, which includes crude petroleum, natural gas, and solid minerals, recorded a 2.23% growth, down from 8.04% in Q4 2023. Its contribution to GDP stood at 4.84%, a slight decline from 4.91% the previous year.
In the agriculture sector, crop production remained dominant, accounting for 90.70% of its GDP contribution. However, its growth slowed to 1.76%, compared to 2.10% in Q4 2023.
The manufacturing sector grew by 1.79% in Q4 2024, up from 1.38% in Q3 2024. However, its contribution to GDP fell to 8.07%, down from 8.23% in Q4 2023.
The construction sector grew by 2.95%, slightly lower than the 3.70% growth in Q4 2023, contributing 3.44% to GDP, compared to 3.47% in the same period the previous year.
The trade sector posted a 1.19% growth, up from 0.65% in Q3 2024 but lower than the 1.40% recorded in Q4 2023. Trade accounted for 15.11% of total GDP in the quarter.
The financial and insurance sector was a standout performer, growing by 27.78%, although slightly down from 29.77% in the previous quarter. Its contribution to GDP rose to 6.10%, compared to 4.95% in Q4 2023.
The information and communication sector, driven largely by telecommunications, recorded a growth rate of 5.90%, slightly down from 6.32% in Q4 2023. The sector’s contribution to GDP increased to 17.00%, up from 16.66% the previous year.
The transportation and storage sector saw significant improvement, growing by 18.61%, in contrast to the -29.00% contraction in Q4 2023. It accounted for 1.26% of GDP.
In contrast, the electricity, gas, steam, and air conditioning supply sector contracted by -5.04%, a sharp decline from the 6.17% growth recorded in Q4 2023. This sector’s contribution to GDP remained modest at 0.49%.
