Nigeria’s economy is continuing to grow, with fresh data from the National Bureau of Statistics showcasing a notable 3.84% year-on-year increase in real GDP terms in the fourth quarter of 2024.
It’s intriguing, isn’t it? When considering economic growth, the numbers certainly speak volumes. Compared to the same period last year, there’s been a significant upward trajectory, makings it fascinating to question: what factors are fueling this economic dynamism? Let me walk you through these details.
“Nigeria’s Gross Domestic Product (GDP) grew by 3.84% (year-on-year) in real terms in the fourth quarter of 2024,” as stated in the report. This marks a rise from the 3.46% growth of the previous year’s corresponding quarter and matches the third quarter of 2024’s performance in a remarkably stable pattern.
Shifting our lens to oil, the country’s flagship export, the average daily production witnessed a slight drop over the period. Fourth quarter production in 2024 was pegged at 1.54 million barrels per day (mbpd), which represents a decrease from the 1.56 mbpd recorded the previous year. It’s worth pondering: could this reduction in output suggest a strategic pivot or merely reflect market-cyclical fluctuations?
Despite this dip, fourth quarter production in 2024 still surpassed that of the third quarter by 0.06 mbpd, indicating a subtle but promising upward adjustment in recent months. These numbers paint a fascinating picture of resilience and adaptation in uncertain times.
Beyond oil, it is the non-oil sectors that tell another compelling narrative. Perhaps the biggest protagonist in this story is the services sector. Its substantial growth of 5.37% contributed a remarkable 57.38% to the collective GDP—a figure that cannot be underestimated. Remember the words of management guru Peter Drucker: “The best way to predict the future is to create it.” Could this growth signify a shift towards a broader economic spectrum?
Turning now to agriculture and industry, their performances were more restrained. The agriculture sector experienced 1.76% growth, a modest decrease from the 2.10% growth noted in the prior year. Similarly, the industry sector grew by 2.00%, revealing a decline from the 3.86% growth witnessed in the fourth quarter of 2023. One wonders if the complexities within these sectors reflect on-going challenges or new growth strategies taking root.
The report elaborates, “In terms of share of the GDP, the services sector contributed more significantly in the fourth quarter of 2024 compared to its share in 2023. On an annual level, the GDP rose by 3.40% in 2024 from the previous year’s 2.74% growth.” It’s an upward curve worthy of attention for anyone tracking economic trends or investing in Nigeria’s future.
For those who love a good list, here are the top ten sectors bringing vigor to Nigeria’s GDP growth for Q4 2024, gauged at current prices (Nominal GDP Growth):
Top 10 Sectors Driving Nigeria’s Most Recent GDP Expansion
| Rank | Sector | Nominal GDP Growth (%) |
|---|---|---|
| 1. | Coal Mining | 122.13 |
| 2. | Crude Petroleum and Natural Gas | 93.41 |
| 3. | Rail Transport & Pipelines | 87.84 |
| 4. | Financial Institutions | 83.07 |
| 5. | Air Transport | 69.83 |
| 6. | Insurance | 66.65 |
| 7. | Post and Courier Services | 63.81 |
| 8. | Public Administration | 45.68 |
| 9. | Professional Scientific and Technical Services | 44.81 |
| 10. | Administrative Support and Services | 44.46 |
This rich tapestry of economic activity suggests a nation positioning itself for broad-based development and global relevance. In every statistic lies the question of sustainability and future prosperity: Will Nigeria be able to maintain this growth momentum amidst global economic shifts?
