Nigeria’s GDP grows by 3.46% in Q3 2024

Nigeria’s economy recorded a 3.46 per cent year-on-year growth in Gross Domestic Product during the third quarter of 2024.

This was revealed in the latest GDP report from the National Bureau of Statistics on Monday.

The growth represents an improvement over the 2.54 per cent recorded in the same period of 2023 and a slight rise from 3.19 per cent in the preceding quarter.

The growth was largely driven by the oil sector, as well as continued expansion in non-oil activities, particularly services and agriculture.
The report stated, “Nigeria’s Gross Domestic Product grew by 3.46 per cent (year-on-year) in real terms in the third quarter of 2024.

“This growth rate is higher than the 2.54 per cent recorded in the third quarter of 2023 and also surpasses the second quarter of 2024, which saw a growth of 3.19 per cent.

“The performance of the GDP in the third quarter of 2024 was mainly driven by the Services sector, which recorded a growth of 5.19 per cent and contributed 53.58 per cent to the aggregate GDP.”
The oil sector posted a real growth of 5.17 per cent in Q3 2024, rebounding significantly from a contraction of -0.85 per cent recorded in the same quarter of the previous year.

Average daily oil production increased to 1.47 million barrels per day (mbpd), up from 1.45 mbpd in Q3 2023 and 1.41 mbpd in Q2 2024.

The sector’s contribution to overall GDP stood at 5.57 per cent, reflecting its enduring significance to the Nigerian economy despite diversification efforts.

The non-oil sector continued to dominate, contributing 94.43 per cent of GDP in real terms and achieving a growth rate of 3.37 per cent.
This marked an improvement over the 2.75 per cent recorded in Q3 2023 and 2.80 per cent in Q2 2024.
Key drivers of growth included financial institutions, telecommunications, agriculture, transportation, and construction, highlighting the importance of economic diversification.

The services sector emerged as the most significant contributor to aggregate GDP, growing by 5.19 per cent and accounting for 53.58 per cent of total GDP.

Telecommunications and Information Services played a pivotal role, reflecting increasing digitalisation and rising demand for connectivity.
Financial institutions also reported robust activity, further bolstering the sector’s performance.

The agriculture sector recorded modest growth of 1.14 per cent in real terms, slightly below the 1.30 per cent growth recorded in Q3 2023.

Crop production remained the dominant contributor, underscoring its critical role in food security and rural employment.

The industrial sector grew by 2.18 per cent, a significant recovery from the 0.46 per cent recorded in Q3 2023.

The Mining and Quarrying sub-sector, led by crude petroleum and natural gas, was the standout performer, supported by moderate gains in manufacturing and construction.

In nominal terms, Nigeria’s GDP for Q3 2024 stood at N71.13 trillion, reflecting a year-on-year increase of 17.26 per cent from N60.66 trillion in Q3 2023.

This growth underlines the combined impact of inflation and increased economic activity across various sectors.