Nigeria’s GDP Leaps By 3.46%

Nigeria’s Gross Domestic Product (GDP) growth rate in real terms (constant prices) increased by 3.46% in the third quarter (Q3) of 2024 compared to the same period last year, as reported by the National Bureau of Statistics (NBS).

According to a statement from the Statistician General of the Federation, Prince Adeyemi Adeniran Adedeji, this growth represents an increase of 0.92 percentage points over the 2.54% recorded in Q3 2023.

Additionally, the growth rate for this quarter is 0.27 percentage points higher than the 3.19% observed in the second quarter (Q2) of 2024.

This indicates a stronger growth performance relative to both the same quarter last year (Q3 2023) and the previous quarter (Q2 2024). The Services sector emerged as the primary contributor to the economy, achieving a growth rate of 5.19% and accounting for 53.58% of the total GDP.

In real terms, economic activity for Q3 2024 reached N20.1 trillion, surpassing the N18.2 trillion recorded in Q2 2024 and the N19.4 trillion from Q3 2023.

In nominal terms (current prices), the aggregate GDP for Q3 2024 was N71.1 trillion, reflecting a year-on-year nominal growth rate of 17.26% compared to the N60 trillion recorded in Q3 2023.

Furthermore, this quarter’s performance also exceeded the N60.9 trillion reported in the preceding quarter (Q2 2024).

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“The major contributing economic activities in real terms in the quarter under review (i.e., Q3 2024) are Crop Production 26.51%, Trade 14.78%, Telecommunication 13.94%, Crude petroleum 5.57% and Real Estate 5.43%. On a broad classification of the economic activities into Agriculture, Industry, and Services sectors based on growth. The Agricultural Sector grew by 1.14% in Q3 2024 in real terms, which is less than Q3 2023 which recorded 1.30%. The industry grew by 2.18% in Q3 2024, which shows improvement compared to the figure recorded in Q3 2023 (0.46%). While the Services sector grew by 5.19% higher than 3.99% recorded in Q3 2023.

“Agriculture contributed 28.65%, Industry 17.77%, and Services 53.58%. Agriculture and industry contributions were less than their contributions in Q3 2023 by 0.66% and 0.22%, while the Services sector had the highest contribution to the GDP in Q3 2024, surpassing the Service sector’s contribution in the corresponding quarter of 2023 by 0.88% percentage points.

“Further disaggregation of the economic activities into oil and non-oil sectors. The oil GDP grew by 5.17% in Q3 2024, which shows improvement compared to Q3 2023 (-0.85%), but less than the previous quarter of Q2 2024 which recorded 10.15%. Similarly, the oil sector accounted for 5.57% of the total GDP during the quarter under review.”

“The third quarter of 2024 recorded an average daily oil production of 1.47 million barrels per day (mbpd), higher than the daily average production of 1.45 mbpd recorded in the same quarter of 2023 by 0.02 mbpd and higher than the second quarter of 2024 production volume of 1.41 mbpd by 0.07 mbpd.”

“In real terms, the non-oil sector contributes 94.43% to the GDP in Q3 of 2024. This shows a decrease on a year-on-year basis compared to the same period in 2023, which stood at 94.52% but higher than Q2 2024, which recorded 94.30%,” the report stated.

Adedeji noted that the economic performance of the non-oil sector in Q3 2024 is attributed to the growth recorded in some economic activities, like crop Production in the Agriculture sector, Trade, Telecommunication, and Real Estate in the Services Sector.