Data from a report recently released by the Nigeria Bureau of Statistics (NBS) has provided a comprehensive outlook of the country’s Gross Domestic Product (GDP) in the second quarter (Q2) of 2024. It reveals that in the second quarter of 2024, real GDP increased by 3.19% on an annual basis. This is higher than the 2.51% growth recorded in the second quarter of 2023 and the 2.98% rise recorded in the first quarter of 2024. With a growth rate of 3.79% and a GDP contribution of 58.76%, the services sector was the main driver of the quarterly growth rate.
The industry sector saw a substantial improvement in the second quarter of 2024, growing by 3.53%, as opposed to a decline of -1.94% in 2023. When compared to the same period in 2023, the industrial and services sectors made up a larger GDP proportion of the overall GDP in the second quarter of 2024. At base prices, the total GDP for the reviewed quarter was nominally ₦60,930,000.58 million. This performance is better than that of the second quarter of 2023, when the total GDP was recorded at ₦52,103,927.13 million, representing a nominal rise of 16.94% year over year.
Oil production in Q2 2024 was 1.41 mbpd on average.
In the second quarter of 2024, the country produced 1.41 million barrels of oil per day (mbpd) on average, which is 0.19 mbpd more than the 1.22 mbpd average produced in the same quarter of 2023 and 0.16 mbpd less than the 1.57 mbpd production volume recorded in the first quarter of 2024. In Q22024, the oil sector’s real growth was 10.15% (year over year), which is a 23.58% improvement over the rate observed in the same quarter of 2023 (-13.43%).
Growth rose by 4.45% points in comparison to QI 2024’s 5.70% growth. In Q2 2024, the oil sector experienced a quarterly growth rate of -10.51%. The oil sector’s contribution to the total real GDP was 5.70 percent in the quarter under review. This represents an increase from the 2023 number and a decrease from the previous quarter’s contribution of 5.34% and 6.38%, respectively. In real terms, the non-oil industry expanded by 2.80% in the reference quarter.
Non-oil sector real GDP contributions was 94.30%.
When compared to the 3.58% rate recorded in the same quarter of 2023, this rate was 0.78% points lower. It was essentially the same as the 2.80% rate recorded in the first quarter of 2024. Real GDP contributions from the non-oil sector in the second quarter of 2024 was 94.30%, which fell below the 94.66% share in the same period in 2023 but higher than the 93.62% share in the first quarter of 2024. The Agriculture sector witnessed a rise of 1.41% from the 1.50% growth seen in Q2 2023.
Based on data provided for the Manufacturing sector, real GDP growth in the second quarter of 2024 was 1.28% (year-over-year) . This is 0.92% and 0.22% decrease from the same quarter in 2023 and the previous quarter respectively. Compared to the growth rate of 6.10% in the same quarter of 2023, the real growth rate for the sector of electricity, gas, steam, and air conditioning supplies was 5.96% in Q2 2024. A rise of 11.39% points was seen from the -5.43% in the previous quarter.
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During the quarter under review, the Mining and quarrying industry experienced real growth of 7.79% year over year. In comparison to the first quarter of 2024 and the same quarter of 2023, it increased by 1.48% and 19.95% points, respectively. In the second quarter of 2024, the non-oil sector accounted for an increase in GDP largely through the following sectors: agriculture (crop production); financial and Insurance (financial institutions); manufacturing (food, beverage, and tobacco); information and communication (telecommunications); and trade.