Nigeria’s economy expanded by 3.46% in the third quarter of 2024, a notable increase from the 2.54% growth recorded in the same period last year. This growth was primarily fueled by the performance of key sectors, including services, agriculture, and industry, according to the National Bureau of Statistics (NBS). The services sector led the way, growing by 5.19% and contributing 53.58% to the overall GDP, while industry and agriculture grew by 2.18% and 1.14%, respectively.
The non-oil sector played a crucial role in this growth, accounting for 94.43% of the GDP and growing by 3.37% year-on-year. The financial services, telecommunications, agriculture (crop production), trade, and construction sectors were particularly influential in driving this performance. The oil sector contributed 5.57% to the total GDP and recorded a growth of 7.39%, marking a positive development despite fluctuations in oil production levels.
Agriculture, a vital sector for Nigeria’s economy, grew by 1.14% in Q3 2024, contributing 28.65% to the GDP. While this represents a slight decline from the 29.31% contribution in Q3 2023, agriculture continues to be a key driver of economic performance. Crop production, which forms the bulk of agricultural output, remained the dominant sub-sector, contributing significantly to the growth in the sector.
Trade, however, faced a slight downturn, contributing 14.78% to the GDP in Q3 2024, down from 15.19% in the same quarter of 2023. Year-on-year, trade grew by just 0.65%, reflecting a slowdown in this sector compared to the previous year. This decline is indicative of broader challenges facing the trade sector, despite its continued importance to the Nigerian economy.
The Information and Communication sector saw a solid year-on-year growth of 5.92%, contributing 16.35% to the total GDP. However, its quarter-on-quarter growth dropped by 7.01%. Similarly, the manufacturing sector posted a quarter-on-quarter growth of 6.74%, contributing 8.21% to the GDP, though slightly lower than in Q3 2023.
In conclusion, while Nigeria’s economic growth in Q3 2024 was driven by strong performances in services, agriculture, and industry, analysts from firms like CardinalStone and Afrinvest suggest that the services sector will remain the cornerstone of the economy. They predict that the economy will continue to see steady growth, with services and financial sectors leading the way, despite challenges in other areas like trade and oil production.
