Nigeria’s GDP grew by 3.84% in Q4 2024, marking a significant economic improvement. The services sector led with 5.37% growth, while agriculture and industry declined. Read the full report.
Nigeria Records 3.84% GDP Growth in Q4 2024, Driven by Services Sector – NBS
Nigeria’s economy recorded a real GDP growth of 3.84% in the fourth quarter (Q4) of 2024, according to the latest report from the National Bureau of Statistics (NBS). This marks an improvement of 0.38 percentage points compared to the 3.46% growth recorded in both Q3 2024 and Q4 2023.
According to the Statistician-General of the Federation, Prince Adeyemi Adeniran, the services sector remained the primary driver of economic expansion, posting a growth rate of 5.37% and contributing 57.38% to the aggregate GDP.
On a quarter-on-quarter basis, real GDP surged by 10.99%, reflecting increased production activities compared to the previous quarter.
The estimated economic output in real terms for Q4 2024 was ₦22.61 trillion, higher than both Q3 2024 (₦20.12 trillion) and Q4 2023 (₦21.77 trillion).
The annual GDP growth rate for 2024 stood at 3.40%, up from 2.74% in 2023. However, agriculture and industry sectors saw a decline, while the services sector showed notable improvement.
In nominal terms (current prices), Nigeria’s aggregate GDP for Q4 2024 was valued at ₦78.37 trillion, reflecting an 18.91% year-on-year increase from ₦65.91 trillion in Q4 2023 and higher than the ₦71.13 trillion recorded in Q3 2024.
Major Economic Contributors in Q4 2024
The key economic activities contributing to real GDP in Q4 2024 were:
Crop Production – 23.42%
Trade – 15.11%
Telecommunications – 14.40%
Real Estate – 5.88%
Financial Institutions – 5.76%
Crude Petroleum – 4.60%
The Agriculture sector grew by 1.76%, while Industry expanded by 2.00%, both declining from their Q4 2023 growth rates of 2.10% and 3.86%, respectively.
In contrast, the Services sector saw robust growth of 5.37%, surpassing its 3.98% growth rate in Q4 2023.
Agriculture – 25.59% (down by 0.53 percentage points from Q4 2023)
Industry – 17.03% (down by 0.31 percentage points)
Services – 57.38% (up by 0.83 percentage points)
On an annual basis, agriculture contributed 24.64% in 2024, down from 25.18% in 2023, while industry contributed 18.47%, slightly lower than 18.65% in 2023. The services sector, however, grew to 56.89%, up from 56.18% in 2023.
Oil vs. Non-Oil Sector Performance
The oil sector recorded a 1.48% growth in Q4 2024, a sharp decline from 12.11% in Q4 2023 and 5.17% in Q3 2024. It accounted for 4.60% of the total GDP in Q4 2024.
Annual oil GDP for 2024 grew by 5.54%, a significant rebound from -2.22% in 2023. The sector’s annual contribution to GDP stood at 5.51%, slightly above its 5.40% contribution in 2023.
Nigeria’s average daily crude oil production in Q4 2024 was 1.54 million barrels per day (mbpd), down from 1.56 mbpd in Q4 2023 but higher than the 1.47 mbpd recorded in Q3 2024.
Meanwhile, the non-oil sector contributed 95.40% to GDP in Q4 2024, up from 95.30% in Q4 2023 and 94.43% in Q3 2024.
Key drivers of non-oil sector growth included:
Rail Transport & Pipelines
Metal Ores
Financial Institutions
Road Transport
Quarrying & Other Minerals
Insurance
On an annual basis, the non-oil sector grew by 3.27% in 2024, up from 3.04% in 2023. However, its aggregate contribution to GDP (94.49%) was slightly lower than the 94.60% recorded in 2023.
The Q4 2024 GDP figures indicate steady economic recovery, driven largely by the expansion in the services sector. However, declines in agriculture and industry, as well as reduced oil sector performance, highlight structural challenges in key productive sectors.
As Nigeria moves into 2025, policymakers will need to focus on sustaining non-oil sector growth while revitalizing agriculture and industry to achieve a more balanced economic expansion.
For continued economic improvement, investments in infrastructure, financial sector stability, and improved industrial productivity will be crucial.
Stay updated with Symfoni News for more insights on Nigeria’s economic performance.
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