Nigeria’s GDP Grows – Annual GDP Growth Accelerates to 3.40% in 2024, Outpacing Last Year’s Performance
Nigeria’s Gross Domestic Product (GDP) has recorded a year-on-year real growth of 3.84% in the fourth quarter of 2024, which was higher than the 3.46% growth of the fourth quarter of 2023 and the 3.46% growth of the third quarter of 2024.
This was disclosed by the National Bureau of Statistics in its latest report on Nigeria’s National Gross Domestic Product Report Q4 2024. The report noted that the GDP was largely driven by the Services sector, which grew by 5.37% and contributed 57.38% to the overall GDP.
The Agriculture sector grew by 1.76% in Q4 2024, less than the 2.10% growth in the same quarter last year. The Industry sector grew by 2.00%, less than the 3.86% growth rate in Q4 2023. Notwithstanding these sectoral disparities, overall GDP growth for 2024 stood at 3.40%, more than the 2.74% in 2023.
Based on an analysis of the National Bureau of Statistics (NBS) quarterly GDP reports, there is a steady upward trend in the performance of the Nigerian economy in 2024. The GDP increased 2.98% year-on-year in Q1, above 2.31% in Q1 2023 but marginally below the 3.46% increase in Q4 2023.
READ MORE ON NIGERIAN GROSS DOMESTIC PRODUCT REPORT Q4 2024: https://microdata.nigerianstat.gov.ng/index.php/catalog/147/download/1157/Q4_2024_GDP_Report.pdf
The Services sector was the most important driver in Q1 2024, growing by 4.32% and representing 58.04% of overall GDP. The second quarter of 2024 recorded GDP growth of 3.19% year on year, above Q2 2023 which grew by 2.51%.
The Agriculture sector grew by 1.41% in Q2 2024, below the same quarter in 2023 but an improvement from the 0.18% growth recorded in the previous quarter. The Manufacturing sector’s real GDP growth was 1.28% in Q2 2024, below the same quarter in 2023 and also below that of the preceding quarter.
During the third quarter of 2024, the GDP maintained a growth rate of around 3.46%, the same as that in the fourth quarter of 2023. The Services sector remained a powerful driver, with a growth of 3.98% and contributing 56.55% to the overall GDP.
The steady increase in the Services sector all through 2024 indicates its driving role in Nigeria’s economy. The marginal decreases in the Agriculture and Industry sectors, however, indicate areas that might need specific policy interventions to maintain and enhance growth.
The general increasing trend in GDP growth indicates resilience amidst global economic uncertainty and predicts a guarded optimistic outlook for Nigeria’s economy in the next year.
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