Nigeria’s economy experienced significant growth in the third quarter of 2024, with GDP expanding by 3.46% to ₦20.115 trillion, up from ₦18.285 trillion (3.19%) in the previous quarter.
The Central Bank of Nigeria (CBN) attributed this steady expansion to improvements in the non-oil sector, restrictive monetary policies to moderate inflation, and enhanced security measures in oil-producing regions.
This marked the third consecutive quarterly growth, surpassing the 3.19% seen in Q2 2024 and the 2.54% recorded in Q3 2023. The report highlights how ongoing efforts to improve Nigeria’s business environment and enhance infrastructure quality are paying off, boosting various sectors of the economy.
The services sector led the charge, growing by 5.19% in Q3 2024 compared to 3.79% in Q2 2024 and 3.99% in Q3 2023. Accounting for a dominant 53.58% of total GDP, this sector’s growth was fueled by stellar performances in finance, insurance, and ICT.
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- Financial and Insurance Sub-Sector:
This sub-sector recorded an impressive growth rate of 30.83%, up from 28.79% in Q2. Gains from the CBN’s recapitalization drive, alongside profits from interest income, consultancy fees, and ATM/transfer charges, underpinned this growth. - ICT Sub-Sector:
Riding the wave of digital transformation, the ICT sub-sector grew by 5.92%, contributing 0.95 percentage points to overall GDP. Increasing demand for digital services like e-commerce, mobile banking, and internet services played a pivotal role. - Transportation and Storage:
After previous contractions, this sub-sector grew by 12.15%, driven by improved road security, a shift from air travel due to high airfares, and investments in road infrastructure and alternative fuels like compressed natural gas (CNG).
The non-oil sector’s growth accelerated to 3.37%, contributing 3.18 percentage points to overall GDP. Key contributors included:
- Agriculture: Modest growth of 1.14%, driven by favorable weather and higher crop yields.
- Trade: Aided by expanding digital commerce.
- Real Estate: Benefiting from rising demand and supportive policies.
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The oil sector grew by 5.17% year-on-year, supported by increased crude oil production, which rose to 1.33 million barrels per day (mbpd) from 1.27 mbpd in Q2. Improved security in oil-producing areas and government initiatives aimed at achieving 2 mbpd by year-end contributed to this performance.
However, global market challenges, including a drop in Bonny Light crude prices to $82.07 per barrel (from $86.92 in Q2), slightly tempered growth in the sector compared to the 10.15% growth in the previous quarter.