Nigeria’s economy demonstrated a notable recovery with a year-on-year growth of 3.46% in Gross Domestic Product (GDP) during the third quarter of 2024, as reported by the National Bureau of Statistics. This growth reflects a significant improvement compared to the 2.54% recorded in the same quarter of 2023 and shows a slight rise from the previous quarter’s growth of 3.19%. The performance of the economy was bolstered by an upturn in the oil sector and an ongoing expansion in non-oil activities, particularly in services and agriculture. The overall performance underscores a trend of resilience and gradual recovery in Nigeria’s economic landscape.
The services sector emerged as the primary engine of growth, with an impressive increase of 5.19%, contributing to over half of Nigeria’s GDP at 53.58%. This sector’s performance reflects the rising demand for services and the ongoing digital transformation within the economy. Telecommunications and information services were pivotal in this expansion, highlighting Nigeria’s increasing digital engagement and connectivity. Moreover, financial institutions significantly contributed to this growth, establishing a solid foundation for future economic activities. The growth in services demonstrates the potential of a diversified economy, diminishing the reliance on traditional sectors.
Meanwhile, the oil sector reported a substantial turnaround, registering a growth rate of 5.17% and rebounding from a contraction of -0.85% during the same quarter in 2023. Average daily oil production increased to 1.47 million barrels per day (mbpd), slightly up from 1.45 mbpd in Q3 2023. Despite efforts to diversify the economy, the oil sector continues to play a vital role, accounting for 5.57% of overall GDP. This resilience highlights the ongoing significance of oil production in Nigeria’s economy, even as other sectors gradually gain momentum.
On the other hand, the non-oil sector further solidified its dominance by contributing 94.43% to the overall GDP. The sector grew by 3.37%, a noticeable improvement from the 2.75% observed in Q3 2023 and a slightly better performance than the 2.80% recorded in Q2 2024. Key contributors to this growth included financial services, telecommunications, agriculture, transportation, and construction—demonstrating the importance of economic diversification in fostering sustainable growth. These advancements reflect broader economic activity beyond oil, indicating a shift towards a more balanced economic structure.
Within the agricultural sector, growth remained modest at 1.14%, slightly below the 1.30% seen in the previous year. Crop production remained the leading contributor, underscoring its critical role in ensuring food security and supporting rural employment. The industrial sector, however, exhibited a promising recovery, growing by 2.18% compared to a mere 0.46% increase in Q3 2023. The mining and quarrying sub-sector, led by crude oil and natural gas, stood out, benefiting from moderate gains in manufacturing and construction, which also contributed to the industrial sector’s growth.
Finally, in nominal terms, Nigeria’s GDP for Q3 2024 reached N71.13 trillion, reflecting a significant year-on-year increase of 17.26% from N60.66 trillion in the same quarter of 2023. This growth highlights the dual impacts of inflation and greater economic activity across various sectors. Overall, the positive performance of the Nigerian economy, driven by strong contributions from services, substantial recovery in oil production, and resilience in the non-oil sectors, paints a picture of steady growth and diversification efforts that could shape the country’s economic future.
