Nigeria’s Gross Domestic Product (GDP) grew by 3.46% year-on-year in real terms during the third quarter of 2024, according to a report by the National Bureau of Statistics (NBS). This represents an improvement over the 2.54% recorded in Q3 2023 and a slight increase from the 3.19% in Q2 2024, signaling sustained economic recovery.
The Services sector emerged as the leading contributor to GDP growth, expanding by 5.19% and accounting for 53.58% of the total GDP in Q3 2024. Its resilience underscores its pivotal role in Nigeria’s economy, with sectors like financial services, telecommunications, and road transport playing key roles. The Financial Institutions sub-sector posted an exceptional 31.92% growth, making it a significant driver of overall economic performance.
The Agriculture sector recorded a 1.14% growth in Q3 2024, slightly lower than the 1.30% achieved in the same period in 2023, reflecting the sector’s ongoing challenges with inflation and productivity. Meanwhile, the Industry sector grew by 2.18%, a substantial improvement from the 0.46% growth recorded in Q3 2023, signaling a rebound in industrial activities.
The non-oil sector remained the backbone of the economy, growing by 3.37% in real terms, up from 2.75% in Q3 2023 and 2.80% in Q2 2024. Contributing 94.43% to the total GDP, it was bolstered by strong performances in trade, crop production, construction, and transport.
Nigeria’s oil sector experienced a 5.17% year-on-year growth in Q3 2024, recovering from a -0.85% decline in Q3 2023. Average daily oil production increased to 1.47 million barrels per day (mbpd), slightly above the 1.41 mbpd recorded in Q2 2024. However, this marks a decline from the 10.15% growth posted in the previous quarter, reflecting ongoing challenges in ramping up crude oil output. The oil sector contributed 5.57% to the GDP in Q3 2024, marginally higher than its 5.48% contribution in Q3 2023.
In nominal terms, Nigeria’s aggregate GDP at basic prices stood at ₦71.13 trillion in Q3 2024, a 17.26% year-on-year increase from ₦60.66 trillion in Q3 2023.
While the Services sector continues to lead Nigeria’s economic growth, the modest performance in agriculture and industry underscores the need for targeted reforms. Sustained growth in the non-oil sector is crucial to diversifying the economy and reducing reliance on oil revenue. However, structural challenges, including inflation, energy costs, and productivity constraints, must be addressed to ensure more inclusive and robust economic progress.
