…As Non-Oil Sector Contributes 95.40% To GDP In Real Terms
Nigeria’s Gross Domestic Product (GDP) growth rate in real terms (Constant price) grew by 3.84% in the fourth quarter of 2024 on a year-on-year basis, representing 0.38% points higher than the 3.46% growth rate recorded in Q4 2023 and also higher by 0.38% basic points relative to similar growth rate of 3.46% recorded in the third quarter (Q3) of 2024.
The National Bureau of Statistics (NBS), which gave these data in its ‘Nigeria GDP (Q4 2024) just published indicated that the growth recorded by the nation’s economy in the quarter under review reflected a higher economic improvement when compared to the preceding quarter (Q3 2024), with the service sector still playing the role of the major driver of the economy which recorded a growth of 5.37% and contributed 57.38% to the aggregate GDP.
Similarly, on a quarter-on-quarter basis, the real GDP grew by 10.99% in Q4 2024, reflecting a higher production level than in Q3 2024.
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In a statement issued by the Statistician-General of the Federation/Chief Executive Officer of the NBS, Prince Adeyemi Adeniran, on Tuesday on the performance of the economy in the quarter under review indicated that the estimated economic activity in real terms for Q4 2024 stood at N22,610,393.45 million, which was higher than the rates recorded in Q3 2024 and Q4 2023, which stood at N20,115,766.93 million and N21,773,263.25 million respectively.
Adeniran noted that this also highlighted the improvement in the quarter under review compared to the previous quarters of Q3 2024 and Q4 2023.
According to the statement, the year 2024 ended with an overall annual GDP growth rate of 3.40%, from the 2.74% reported in 2023 though there was a decline in the performance of Agriculture and Industry sectors in 2024 relative to 2023, while the performance of the Services sector improved in 2024.
The Bureau revealed that in nominal terms (current price), aggregate GDP stood at N78,374,120.95 million in Q4 of 2024, indicating a year-on-year nominal growth rate of 18.91%, which was higher than the value of N65,908,258.59 million in Q4 2023 and N71,131,091.07 million in the preceding quarter.
It identified the major contributing economic activities in real terms in the quarter under review as Crop Production 23.42%, Trade 15.11%, Telecommunication 14.40%, Real Estate 5.88%, Financial Institutions 5.76%, and Crude petroleum 4.60%.
On a broad classification of the economic activities into Agriculture, Industry, and Services sectors based on growth, the report’s data showed that the Agricultural Sector grew by 1.76% and the Industry grew by 2.00%, indicating a decline when compared to the 2.10% and 3.86% growth rates they recorded respectively in the preceding quarter. The Services sector recorded a 5.37% increase in Q4 2024 compared to the 3.98% it recorded in Q4 2023.
Analysis of the contributions of the broad economic sectors in the period under review showed that Agriculture contributed 25.59%, Industry 17.03%, and Services 57.38%. However, Agriculture and industry’s contributions were less than their contributions in Q4 of 2023 by 0.53% and 0.31 basis points.
The report reflected that Services sector had the highest contribution to the GDP in Q4 2024, surpassing its contribution in the corresponding quarter of 2023 by 0.83% basis points.
When analysed on year-on-year basis, the annual contributions of the economic sector showed that Agriculture contributed 24.64% in 2024, which is lower compared to its 25.18% contribution in 2023. Similarly, the industry sector’s annual contribution to the nation’s GDP in was 18.47%, which was also lower than the 18.65% it contributed in 2023. However, the services sector contributions for 2024 were 56.89% which exceeded the 56.18% recorded for 2023.
Further disaggregation of the economic activities into oil and non-oil sectors reflected that the oil GDP grew by 1.48% in Q4 2024, which showed a decline when compared to 12.11% recorded in Q4 2023, and the previous quarter of Q3 2024 which stood at 5.17%. The oil sector accounted for 4.60% during the quarter under review.
The annual oil GDP for 2024 grew by 5.54%, which was 7.75% higher than its annual -2.22% GDP recorded in 2023 while the annual contribution of oil stood at 5.51% in 2024, slightly higher than its 5.40% contribution in Q4 2023.
In the quarter under review, Nigeria’s average daily oil production of 1.54 million barrels per day (mbpd) was lower than the daily average production of 1.56 mbpd recorded in the same quarter of 2023 by 0.03 mbpd. Even then, the Q4 2024 production volume was higher than the preceding quarter’s 1.47 mbpd by 0.06 mbpd.
According to the data from the Bureau, the non-oil sector contributes 95.40% to the GDP in Q4 of 2024 in real terms, representing an increase on a year-on-year basis when compared to the sector’s contribution to the GDP in the corresponding quarter of 2023, which stood at 95.30%.
Similarly, the non-oil sector’s contribution to the GDP in Q4 2024 also exceeded the 94.43% it contributed in the preceding quarter of the year.
The Bureau attributed the improved performance of the non-oil sector in Q4 2024 to the growth recorded in some economic activities, including Rail Transport & Pipelines, Metal Ores, Financial Institutions, Road Transport, Quarrying & Other Minerals, and Insurance,
It also noted that on an annual basis, the non-oil grew by 3.27% in 2024, which was higher than the 3.04% growth rate it recorded in 2023 while in terms of aggregate contributions, the non-oil contributed 94.49% in 2024, which is marginally lower than the 94.60% it contributed in 2023.
