Nigeria’s GDP expands 3.46% in Q3’24  on services sector strength

Onome Amuge

Nigeria’s gross domestic product’s (GDP) growth rate in real terms recorded a 3.46 percent increase in the third quarter (Q3) of 2024 compared to the same period last year, marking an improvement of 0.92 percentage points over the 2.54 percent growth recorded in Q3 2023, according to data released by the National Bureau of Statistics (NBS) on Monday.

The third quarter report showed that the Nigerian economy’s 3.46 percent growth was 0.27 percentage points higher than the 3.19 percent recorded in the second quarter of the year.  The driving force behind this growth was the Services sector, which recorded a 5.19 percent growth rate, contributing 53.58 percent to the GDP

The Nigerian economy produced N20,115,766.93 million worth of economic activity in real terms during Q3 2024, eclipsing the production levels recorded in Q2 2024 (N18,285,019.24 million) and Q3 2023 (N19,442,281.18 million).

This surge in economic output is indicative of a promising upward trend in production levels across Nigeria.

Nigeria’s aggregate GDP soared to an impressive N71,131,091.07 million in Q3 2024, clocking in at 17.26 percent year-on-year nominal growth rate from N60,658,600.37 million in Q3 2023 and beating the N60,930,000.58 million recorded in Q2 2024, the preceding quarter

The Q3 2024 economy saw significant contributions from Crop Production (26.51%), Trade (14.78%), Telecommunication (13.94%), Crude petroleum (5.57%), and Real Estate (5.43%), with these industries collectively driving economic growth in the quarter.

When evaluating economic sectors, the Agricultural Sector, a cornerstone of Nigeria’s economy, expanded at a 1.14 percent pace in Q3 2024, marking a minor contraction from the 1.30 percent growth registered in Q3 2023.

Despite a period of economic turbulence, the Industry sector clocked in at 2.18 percent growth rate in Q3 2024, indicating a marked improvement from the 0.46 percent growth posted in Q3 2023. 

The Services sector, on the other hand,was up 5.19 percent in Q3 2024, outgrowing the 3.99 percent recorded in Q3 2023.

A breakdown of sectoral contributions to GDP revealed that Agriculture chipped in 28.65 percent, Industry weighed in at 17.77 percent, and Services carried the lion’s share, contributing 53.58 percent. 

The contributions of the Agriculture and Industry sectors to GDP slipped slightly in Q3 2024 compared to the same period last year, with the former down 0.66 percent to 28.65 percent and the latter dipping 0.22 percent to 17.77 percent. 

However, the Services sector more than made up for this by shouldering a greater proportion of the GDP pie, growing its contribution by 0.88% percentage points to 53.58 percent, its highest in the year.

A deeper dive into the data reveals a positive trajectory for the oil sector, with the oil GDP expanding 5.17 percent in Q3 2024, marking an improvement from the contraction of -0.85 percent in Q3 2023, albeit falling shy of the previous quarter’s 10.15 percent growth.

In the overall scheme of things, the oil sector pulled its weight, accounting for 5.57 percent of the total GDP in Q3 2024, highlighting its continued significance in the Nigerian economy.

In Q3 2024, Nigeria’s oil production pumped up to an average of 1.47 million barrels per day (mbpd), recording a slight but steady uptick of 0.02 mbpd from the 1.45 mbpd recorded in Q3 2023 and a more pronounced 0.07 mbpd jump from the 1.41 mbpd recorded in Q2 2024.