KEY POINTS
- GDP Growth: Up from 3.16 percent in Q2’24 and 2.54 percent in Q3’23, 46 percent in Q3’24.
- Sector Contributions: Growth was services (53.58 percent), oil sector (5.5 percent) and non oil sector (3.37 percent).
- Challenges: In addition to high food and energy prices, there has been increased volatility of foreign exchange.
In the third quarter of 2024 (Q3’24), Nigeria’s Gross Domestic Product (GDP) grew at 3.46 percent from 3.16 percent in Q2’24 and 2.54 percent in Q3’23, the National Bureau of Statistics (NBS) says.
The section contributed 53.58 percent to the aggregate GDP and the main driver of the improvement was the services sector which grew 5.19 percent.
Besides the oil sector, the non-oil sector registered a growth of 3.37 percent in real terms, dominated by Agriculture, trade, finances institutions, telecommunication and construction.
Q3’23 saw the oil sector post a 5.17percent growth with daily oil production rising to 1.47 mbpd from 1.45 mbpd in Q3’23 (representing 5.5 percent of the GDP) following a higher growth of 5.5percent.
Sectoral highlights and challenges
The services sector once again remained the main driver of GDP growth, however, the agriculture sector grew 1.14 percent, decelerating by 0.16 percentage points from that of Q3’23’s 1.3 percent.
The industrial sector rebounded with 2.18 percent growth, against 0.46 percent in Q3’23.
CardinalStone Research analysts believe the services sector will continue to drive GDP growth, with the analyst firm expecting 2024 full year GDP growth to rise to 3.2 percent, up from 2023 at 2.7 percent.
However, as Agriculture and Industry grew, rising food inflation at 39.2 percent in October facilitated by the appreciation on energy; coupled with foreign exchange pressures posed a challenge.
