Nigeria’s GDP expands by 3.46% in Q3 2024, boosted by services sector
Nigeria’s Gross Domestic Product (GDP) grew by 3.46% year-on-year in real terms during the third quarter of 2024, according to the latest report from the National Bureau of Statistics (NBS).
This represents an improvement from the 2.54% growth recorded in Q3 2023 and the 3.19% growth reported in Q2 2024.
The Q3 2024 growth was primarily driven by the Services sector, which expanded by 5.19% and accounted for 53.58% of the aggregate GDP, highlighting the sector’s increasing significance in Nigeria’s economic structure.
Sectoral Performance
The Services sector emerged as the major driver of economic growth, contributing a larger share to the GDP compared to the same quarter in 2023. Its 5.19% growth underscores its resilience and its capacity to stimulate overall economic performance.
The Agriculture sector recorded a modest growth of 1.14%, slightly below the 1.30% growth posted in Q3 2023.
The Industry sector grew by 2.18%, a significant improvement from the 0.46% recorded in Q3 2023.
Nigeria’s aggregate GDP at basic prices was valued at N71.13 trillion in nominal terms for Q3 2024, reflecting a 17.26% year-on-year nominal growth compared to N60.66 trillion in Q3 2023.
Oil Sector Highlights
Nigeria’s average daily oil production increased 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.
The oil sector recorded a real growth rate of 5.17% year-on-year, an improvement of 6.02 percentage points from the -0.85% recorded in Q3 2023. However, this was a decline from the 10.15% growth achieved in Q2 2024.
The oil sector contributed 5.57% to the total real GDP in Q3 2024, slightly higher than the 5.48% recorded in Q3 2023 but lower than the 5.70% contribution in Q2 2024.
Non-Oil Sector Performance
The non-oil sector grew by 3.37% in real terms in Q3 2024, exceeding the 2.75% growth recorded in Q3 2023 and the 2.80% growth in Q2 2024.
Key drivers included financial services, telecommunications, crop production, road transport, trade, and construction.
The non-oil sector contributed 94.43% to Nigeria’s GDP in real terms in Q3 2024, slightly lower than the 94.52% recorded in Q3 2023 but higher than the 94.30% reported in Q2 2024.
What You Should Know
The federal government has announced plans to rebase the country’s Consumer Price Index (CPI) and GDP by 2025 to enhance economic policy accuracy and boost investor confidence.
According to the Ministry of Finance, discussions are being finalized with the Statistician General of the Federation, Adeyemi Adeniran, and his team.
The Ministry noted that the rebasing initiative is expected to provide clearer economic insights and deliver significant benefits for the country by improving the reliability of economic data.
