Nigeria’s Gross Domestic Product (GDP) grew by 3.46% in real terms in the third quarter of 2024, according to the National Bureau of Statistics (NBS). This marks a significant improvement compared to the 2.54% recorded in Q3 2023 and the 3.19% in Q2 2024, reflecting the economy’s continued recovery and resilience.
Key Drivers of Growth
The growth was largely fueled by the Services sector, which expanded by 5.19%, contributing 53.58% to the total GDP. Other sectors also performed positively:
– Non-Oil Sector: Grew by 3.37% in real terms, surpassing the 2.75% recorded in Q3 2023 and 2.80% in Q2 2024. This sector contributed a remarkable 94.43% to the GDP and was bolstered by Financial and Insurance services, Telecommunications, Crop Production, Road Transport, Trade, and Construction.
– Oil Sector: Achieved a real growth of 5.17%, a notable recovery from the -0.85% decline in Q3 2023. On a quarter-on-quarter basis, the sector grew by 7.39% but accounted for only 5.57% of the GDP.
– Industry Sector:Grew by 2.18%, up from 0.46% in Q3 2023.
– Agriculture Sector:Posted a growth rate of 1.14%, slightly lower than the 1.30% recorded in Q3 2023.
Aggregate Performance
The nominal GDP for Q3 2024 stood at N71 trillion, a 17.26% year-on-year increase from N60.6 trillion recorded in Q3 2023. This reflects higher economic activity across various sectors.
Sectoral Contributions
The Services sector retained its position as the largest contributor to GDP, further solidifying its dominance in driving Nigeria’s economic performance. Despite its smaller share, the Oil sector’s recovery underscores its potential to support future growth.
The non-oil sector remains a critical driver, with contributions from diverse industries ensuring economic stability. Its consistent expansion highlights the growing diversification of Nigeria’s economy, reducing dependency on oil revenues.
This upward trend in GDP growth, driven by robust performance across multiple sectors, is a positive signal for Nigeria’s economic outlook and opportunities for MSMEs to thrive across Africa.
