Nigeria’s economy grew by 3.84% in the fourth quarter of 2024 in real terms, the strongest growth recorded since Q4 2021, when its Gross Domestic Product (GDP) expanded by 3.98%.
According to a quarterly GDP report released on Tuesday by the National Bureau of Statistics, this growth rate is also higher than the 3.46% recorded in the corresponding period of 2023.
Nigeria’s economic performance in Q4 2024 was primarily driven by the services sector, which grew by 5.37% and contributed 57.38% to the aggregate GDP.
“In the quarter under review, aggregate GDP at basic price stood at ₦78,374, 120.95 million ($52.8 billion) in nominal terms,” the NBS found.
“This performance is higher when compared to the fourth quarter of 2023 which recorded aggregate GDP of ₦65,908,258.59 million ($43.9 billion), indicating a year-on-year nominal growth of 18.91%.”
The non-oil sector remained the dominant contributor to economic expansion, accounting for 95.40% of real GDP growth in Q4 2024. The sector grew by 3.96% year-on-year, accelerating from the 3.07% growth recorded in the same period of 2023.
This output was powered by increased economic activities in key sectors including financial and insurance, information and communication, agriculture, transportation and storage, trade and manufacturing.
However, a closer look at individual industries shows a mixed performance. While financial services, trade, and transportation recorded strong gains, three key sectors—agriculture, information and communication technology (ICT), and manufacturing—contracted in nominal terms.
Meanwhile, the oil sector continued to shrink, contracting by 10.64% in Q4 2024, though this was a slight improvement from the 12.11% decline recorded in Q4 2023. The sector faced significant headwinds, including declining crude oil production and delays in critical infrastructure projects.
For the full year 2024, Nigeria’s economy grew by 3.40%, up from 2.74% in 2023. The non-oil sector maintained its dominant role, contributing 94.49% of GDP, while the oil sector accounted for 5.51%.
The latest figures suggest that while Nigeria’s economy is gaining momentum, structural challenges, particularly in oil production and select non-oil industries, remain critical to long-term growth.
