NIGERIA’s gross domestic product (GDP) grew by 3.84 per cent year-on-year in real terms in the fourth quarter (Q4) of 2024, driven mainly by the services sector, the National Bureau of Statistics (NBS) said in its latest report.
The report, ‘Nigerian Gross Domestic Product (GDP) Report fourth quarter 2024, was released on Tuesday, February 25.
It shows that Nigeria’s fourth quarter GDP growth of 3.84 per cent was higher than the 3.46 per cent recorded in the fourth quarter of 2023.
The ICIR reports that the growth rate was also higher than the 3.46 per cent reported in the third quarter of 2024.
The service sector recorded a growth of 5.37 per cent and contributed 57.38 per cent to the aggregate GDP, NBS stated.
It said the services sector contributed more to the aggregate GDP in the review quarter compared to the corresponding quarter of 2023 in terms of share of the overall GDP growth rate.
The agriculture sector recorded 1.76 per cent growth compared to 2.10 per cent recorded in fourth quarter 2023.
Similarly, the industry sector settled at 2.00 per cent, declining from 3.86 per cent in the corresponding quarter of 2023.
For the overall year, Nigeria’s GDP grew by 3.40 per cent in 2024 compared to 2.74 per cent in 2023.
Oil sector performance
In the review quarter, NBS said the country recorded an average daily oil production of 1.54 million barrels per day (mbpd).
The figure is lower than the daily average production of 1.56 mbpd recorded in the same quarter of 2023.
It is, however, higher than the oil production volume of 1.47 mbpd recorded for the third quarter of 2024.
The real growth of the oil sector was 1.48 per cent year-on-year) in Q4 2024, NBS stated.
It indicates a decrease of 10.64 per cent points relative to 13.11 per cent recorded in the Q4 of 2023.
When compared to the 5.17 per cent recorded in Q3 2024, it decreased by 3.70 per cent.
On a quarter-on-quarter basis, the oil sector recorded a negative growth rate of -7.19 per cent in Q4 2024.
Its annual growth rate stood at 5.54 per cent, higher than the negative -2.22 per cent recorded in 2023.
The oil sector also contributed 4.60 per cent to the total real GDP in Q4 2024, down from the 4.70 per cent recorded in Q4 2023.
Its contribution was also lower when compared to the 5.57 per cent reported in the third quarter of 2024.
Overall, the oil sector contributed 5.51 per cent for the full year of 2024, higher than 5.40 per cent for the whole year of 2023,
Non-oil sector performance
The non-oil sector grew by 3.96 per cent in real terms during the review quarter.
This rate was higher than the 3.07 per cent reported in Q4 2023.
It was also higher than the 3.37 per cent recorded in the third quarter of 2024.
The NBS stated that the non-oil sector was driven mainly by financial institutions, telecommunications, crop production, road transport, trade, and manufacturing.
The sub-sector growth accounted for the GDP positive growth in the review quarter.
In real terms, the non-oil sector contributed 95.40 per cent to Nigeria’s GDP in Q4 2024, higher than 95.30 per cent recorded in Q4 of 2023.
It was also higher than the 94.43 per cent recorded in the third quarter of 2024.
On the aggregate, 94.49 per cent was contributed by the non-oil sector in the full year of 2024, lower than the 94.60 per cent reported in 2023, the statistics office added.
The ICIR can report that the statistics office had hinted at its plans to unveil a rebased GDP for the country.
This will mean using a new methodology to calculate the GDP.
The revised framework is expected to take effect from the first-quarter GDP report of this year.