According to the National Bureau of Statistics (NBS), Nigeria’s Economy recorded substantial growth in Q3 2024, expanding by 3.46%, an improvement from the 2.54% achieved during the same period in 2023. This growth highlights ongoing efforts to diversify the economy and stabilise key sectors. The services, agriculture, and industrial sectors played significant roles in driving this positive trend, with the services sector standing out as the primary contributor, showcasing remarkable performance and reinforcing its central role in the nation’s economic recovery.
The services sector grew by 5.19%, accounting for 53.58% of Nigeria’s GDP, underscoring its significant impact on the national economy. The NBS highlighted the strong performances within financial services, telecommunications, and transport, all of which benefited from the recovery in transportation and an increase in data consumption. Additionally, the Central Bank of Nigeria’s (CBN) monetary policies, including its consistent Interest Rate hikes, played a crucial role in supporting the Finance sector, particularly in banking and insurance, ensuring the sector’s continued stability, as noted by CardinalStone’s analysis.
Non-oil sector drives growth, with ICT leading digital transformation.
Furthermore, the non-oil sector, which made up 94.43% of GDP, continued to show strength, with notable contributions from agriculture, trade, construction, and ICT. Although the Agriculture sector’s growth slowed to 1.14% compared to the same period in 2023, it remained a key pillar, contributing 28.65% to GDP. Crop production, which is the dominant sub-sector, accounted for over 92% of agriculture’s nominal output. Meanwhile, Trade showed slower growth, and Manufacturing experienced positive momentum with a 6.74% increase on a quarter-on-quarter basis.
Moreover, the ICT sector proved to be a major contributor to economic progress, expanding by 5.92% year-on-year, a notable improvement from 4.4% in Q2. Analysts at CardinalStone attributed this growth to increased data consumption per user, which helped offset the 24.3% decline in telecom subscribers. The sector contributed 16.35% to GDP, reinforcing its importance as a driving force in Nigeria’s digital transformation. By fostering innovation, enhancing business operations, and improving connectivity, ICT continues to support the nation’s broader development goals.
Oil sector recovery gains momentum amid strong growth in other sectors.
In the oil sector, contributions remained modest, with a 5.57% share of GDP. However, the sector grew by 7.39%, marking its third consecutive quarterly improvement since the pandemic. Afrinvest’s analysis noted a slight rise in crude oil production to 1.47 million barrels per day in Q3, up from 1.41 million in Q2. Despite these gains, production levels still fell short of the 1.78 million barrels projected for 2024, highlighting ongoing challenges within the sector.
Afrinvest’s insights also emphasised that the overall growth in Q3 was driven by a balance between oil and non-oil sectors. The services sector led with a 5.2% year-on-year expansion, further cementing its role as the primary contributor to GDP growth. This positive performance was supported by key industries such as ICT, finance, and transportation. CardinalStone’s analysts projected full-year GDP growth of 3.2%, an improvement from 2.7% in 2023, driven by the sustained strength of services and ICT.
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Considering the statistics, Nigeria’s economic performance in Q3 2024 highlights resilience and diversification, with the services sector at the forefront, supported by agriculture and ICT. While the oil sector is showing signs of recovery, it still faces challenges. To ensure continued growth, policymakers should focus on investing in Renewable Energy and enhancing digital infrastructure, which will reduce the nation’s reliance on oil and strengthen its technological capabilities. Such reforms will be critical to ensuring that Nigeria’s growth is both sustainable and inclusive.