Nigeria’s economy has marked a significant milestone, achieving its fastest growth in three years with a GDP increase of 3.84% in the fourth quarter of 2024.
This growth is primarily driven by a robust performance in the services sector, reflecting a gradual recovery and resilience in the face of ongoing economic challenges.
Key Takeaways
- GDP Growth: 3.84% in Q4 2024, up from 3.46% in Q3 2024.
- Annual Growth: Full-year GDP growth for 2024 stands at 3.40%, an improvement from 2.74% in 2023.
- Services Sector: Grew by 5.37%, contributing 57.38% to the GDP.
- Oil Production: Average daily output at 1.54 million barrels per day, slightly down from 1.56 million in Q4 2023.
- Agriculture and Industry: Growth rates of 1.76% and 2.00%, respectively, indicating slower performance compared to previous years.
The National Bureau of Statistics (NBS) released data indicating that the services sector has been the primary driver of this economic growth.
The sector’s expansion is attributed to significant increases in financial services and telecommunications, which grew by 27.78% and 5.90%, respectively.
Despite the positive growth figures, the agriculture and industrial sectors have shown slower growth rates. The agriculture sector’s growth declined from 2.10% in Q4 2023 to 1.76% in Q4 2024, while the industrial sector also saw a decrease from 3.86% to 2.00% in the same period.
Economic Overview
- Nominal GDP: Valued at N78.37 trillion in Q4 2024, reflecting an 18.91% increase from N65.91 trillion in Q4 2023.
- Oil Sector Contribution: Contributed 4.60% to the total GDP, down from 4.70% in Q4 2023.
- Non-Oil Sector Resilience: The non-oil sector expanded by 3.96% in real terms, contributing 95.40% to the GDP in Q4 2024.
The Nigerian government has expressed optimism regarding the economic outlook, with projections indicating a potential GDP growth of 3.5% in 2025.
This anticipated growth is supported by a decline in inflation and continued robust activity in the services sector.
Challenges Ahead
While the latest GDP figures reflect a strengthening economy, challenges remain, particularly in the oil sector, where production fluctuations and global market dynamics continue to pose risks.
Policymakers are urged to focus on sustaining growth momentum by addressing structural bottlenecks and fostering an investment-friendly environment.
In conclusion, Nigeria’s economic growth in Q4 2024 is a positive sign of recovery, driven by the services sector. However, the government must navigate ongoing challenges to ensure sustainable growth and improve the livelihoods of its citizens.