Nigeria’s economy exhibited impressive growth in the third quarter of 2024, expanding by 3.46% compared to the same period in 2023, according to the National Bureau of Statistics (NBS). This marks a significant improvement from the 2.54% growth recorded in Q3 2023 and the 3.19% growth observed in the previous quarter, indicating a positive shift in the country’s economic trajectory. The growth in Q3 2024 was largely driven by the robust performance of the Services sector, which emerged as the principal contributor to the country’s economic expansion. This sector’s output grew by 5.19%, reflecting its increasing dominance in the national economy. In fact, the Services sector now accounts for 53.58% of Nigeria’s total GDP, highlighting its vital role in shaping the economic landscape.
A closer examination of the different sectors reveals a nuanced picture of Nigeria’s economic performance in Q3 2024. The Services sector, which has consistently been a leader in driving economic growth, posted a growth rate of 5.19% in Q3 2024, representing a more substantial contribution than during the same period in 2023. This reinforces the sector’s growing importance within the broader economy. Meanwhile, the Agriculture sector recorded a more modest growth rate of 1.14%, a slight decline from the 1.30% growth seen in Q3 2023. While still positive, this represents a softening in the pace of agricultural expansion. On the other hand, the Industrial sector showed a notable improvement, growing by 2.18%, a significant increase from the 0.46% growth recorded in Q3 2023. This suggests a rebound in industrial activities, contributing positively to the overall economic performance.
In terms of nominal GDP, Nigeria’s economy reached ₦71.13 trillion in Q3 2024, reflecting a robust 17.26% increase from ₦60.66 trillion in the same period of 2023. This growth in nominal GDP underscores the overall expansion of the economy, with various sectors contributing to this increase.
The oil sector, although showing positive growth, did not experience the same level of expansion as other sectors. Nigeria’s daily crude oil production rose slightly to 1.47 million barrels per day (mbpd) in Q3 2024, compared to 1.45 mbpd in Q3 2023. Despite a year-on-year real growth of 5.17%, the oil sector’s performance fell short of the 10.15% growth observed in the previous quarter, signaling a slowdown in its growth momentum. The oil sector’s contribution to the national GDP was 5.57%, slightly up from 5.48% in Q3 2023 but lower than the 5.70% contribution recorded in Q2 2024.
The non-oil sector, which encompasses industries such as telecommunications, agriculture, and financial services, grew by 3.37% in Q3 2024, surpassing the 2.75% growth rate achieved in Q3 2023 and the 2.80% recorded in Q2 2024. This growth was largely driven by strong performances in financial services, telecommunications, crop production, road transport, trade, and construction. Although the non-oil sector’s contribution to GDP slightly decreased from 94.52% in Q3 2023 to 94.43% in Q3 2024, it remains a key pillar of Nigeria’s economic stability and growth.
The data from Q3 2024 paints an optimistic picture of Nigeria’s economic trajectory, driven by the solid performance of the Services sector, coupled with improvements in industrial activity and non-oil sectors. While the oil sector’s growth showed signs of slowing, the overall expansion of various industries points to a diversified and resilient economy, which bodes well for the country’s economic prospects in the coming quarters.
