In the third quarter of 2024 (Q3) Nigeria’s economy (GDP) continued its upward trajectory, posting a robust growth rate of 3.46%. This marks a significant improvement compared to the 2.54% recorded in the same period of the previous year and the 3.19% achieved in the second quarter of 2024.
Services Sector Drives Economic Growth
According the National Bureau of Statistics (NBS) recent report, the services sector emerged as the primary engine of growth, contributing 53.58% to the aggregate GDP and expanding by 5.19%. This sector encompasses a wide range of industries, including finance, telecommunications, and trade, and its strong performance reflects increased economic activity and consumer spending.
Agriculture and Industry Sectors Show Promise
The GDP Q3 2024 report details that while the services sector dominated growth, the agriculture and industry sectors also contributed positively. Agriculture grew by 1.14%, and the industry sector expanded by 2.18%. These sectors are crucial for Nigeria’s economic diversification and job creation efforts.
Oil Sector Rebounds
The oil sector, which has been volatile in recent years, experienced a significant rebound. Real growth in the sector reached 5.17%, driven by increased oil production and higher global oil prices. The average daily oil production in the period was 1.47 million barrels per day (mbpd).
Non-Oil Sector Remains Resilient
The non-oil sector, which accounts for the majority of Nigeria’s GDP, grew by 3.37%. Key drivers of growth within this sector included financial institutions, telecommunications, agriculture, transportation and storage, trade, and construction.
If You Ask ME
The robust economic performance in Q3 2024 provides a positive outlook for Nigeria’s economy. Continued growth in the services sector, coupled with improvements in the oil and non-oil sectors, is expected to sustain economic momentum.
However, challenges such as inflationary pressures, exchange rate volatility, and security concerns remain. Addressing these challenges will be crucial to ensure sustained economic growth and development in Nigeria.
As the country moves forward, policymakers will need to implement policies that promote investment, create jobs, and improve the business environment. By focusing on these areas, Nigeria can unlock its full economic potential and secure a brighter future for its citizens.
