By Hosea Parah, Abuja 

Nigeria’s economy showed strong growth in the fourth quarter (Q4) of 2024, with the country’s Gross Domestic Product (GDP) expanding by 3.84% in real terms compared to the same period in 2023, according to the latest data from the National Bureau of Statistics (NBS). This marks an improvement over the 3.46% growth seen in Q4 2023, signaling increased economic activity at the close of 2024.

Prince Adeyemi Adeniran, the Statistician-General of the Federation and Chief Executive Officer of the NBS, emphasized that the services sector played a central role in driving the economy, registering a robust 5.37% growth in Q4 2024. This sector accounted for 57.38% of Nigeria’s total GDP, highlighting its vital contribution to the national economy.

On a quarterly basis, Nigeria’s GDP rose by 10.99%, reflecting a higher level of economic activity than in the preceding quarter, Q3 2024. The total economic output for Q4 2024 reached ₦22.61 trillion, surpassing the ₦20.12 trillion recorded in Q3 2024 and the ₦21.77 trillion seen in Q4 2023.

Despite a strong performance in Q4, Nigeria’s annual GDP growth for 2024 stood at 3.40%, slightly up from the 2.74% growth recorded in 2023. However, agriculture and industry showed slower growth, while services continued to expand at a solid pace.

In nominal terms, Nigeria’s GDP for Q4 2024 reached ₦78.37 trillion, reflecting an 18.91% year-on-year increase from ₦65.91 trillion in Q4 2023.

Key contributors to this growth included crop production, trade, telecommunications, real estate, and financial institutions, with crop production alone accounting for 23.42% of the GDP.

Agriculture and industry experienced slower growth, with agriculture growing by just 1.76% (down from 2.10% in Q4 2023) and industry expanding by 2.00% (compared to 3.86% in the same quarter of 2023). In contrast, the services sector saw a notable 5.37% growth, a significant increase from 3.98% in Q4 2023.

The oil sector saw modest growth, with oil GDP increasing by 1.48% in Q4 2024, a sharp drop from the 12.11% growth recorded in Q4 2023. Average daily oil production for the quarter stood at 1.54 million barrels per day, slightly lower than the 1.56 mbpd seen in Q4 2023 but higher than the 1.47 mbpd recorded in Q3 2024.

The non-oil sector remained a strong performer, contributing 95.40% of the GDP in real terms, up from 95.30% in Q4 2023. Key sectors driving this growth included rail transport, metal ores, financial institutions, and insurance.

Looking ahead, Nigeria’s economy is expected to maintain its recovery momentum, with the services sector continuing to lead growth. However, challenges in agriculture and industry could pose risks to sustained expansion. The government’s focus on enhancing the non-oil sector, particularly in transportation and financial services, could further strengthen economic stability in 2025.