…As oil sector grows 5.5%

By Elizabeth Adegbesan

Nigeria’s Gross Domestic Product (GDP) grew by 3.4 percent in 2024, representing a 0.66 percentage point year-on-year (YoY) growth when compared to 2.74 percent recorded in 2023.

The National Bureau of Statistics, NBS, disclosed this today in its GDP report for Q4’24.

The Bureau also said that the oil sector recorded an annual growth rate of 5.5% during the period.

NBS said, “Overall, the annual GDP growth in 2024 stood at 3.4 percent, an increase from 2.74 percent in 2023.

“Nigeria’s Gross Domestic Product (GDP) grew by 3.84 percent (year-on-year) in real terms in the fourth quarter of 2024.

“This growth rate is higher than the 3.46 percent recorded in the fourth quarter of 2023 and the third quarter of 2024 growth rate (approximately 3.46%).

“The performance of the GDP in the fourth quarter of 2024 was driven mainly by the services sector, which recorded a growth of 5.37% and contributed 57.38% to the aggregate GDP.

“The agriculture sector grew by 1.76%, from the growth of 2.10% recorded in the fourth quarter of 2023.

“The growth of the industry sector was 2.00%, a decline from 3.86% recorded in the fourth quarter of 2023.

“In terms of share of the GDP, the services sector contributed more to the aggregate GDP in the fourth quarter of 2024 compared to the corresponding quarter of 2023.

“Overall, the annual GDP growth in 2024 stood at 3.40%, an increase from 2.74% in 2023.”

For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors.

On the oil sector, NBS said, “The nation in the fourth quarter of 2024 recorded an average daily oil production of 1.54 million barrels per day (mbpd), lower than the daily average production of 1.56 mbpd recorded in the same quarter of 2023 by 0.03 mbpd and higher than the third quarter of 2024 production volume of 1.47 mbpd by 0.06 mbpd (Figure 3).

“The real growth of the oil sector was 1.48 percent (year-on-year) in Q4 2024, indicating a decrease of 10.64 per cent points relative to the rate recorded in the corresponding quarter of 2023 (12.11%).

“Growth decreased by 3.70% points when compared to Q3 2024, which was 5.17%.

“On a quarter-on-quarter basis, the oil sector recorded a growth rate of -7.19% in Q4 2024. The annual growth rate of oil stood at 5.54%, higher than the -2.22% recorded in 2023.

“The oil sector contributed 4.60% to the total real GDP in Q4 2024, down from the figure recorded in the corresponding period of 2023 and down from the preceding quarter, where it contributed 4.70% and 5.57%, respectively. Overall, it contributed 5.51% in 2024, higher than its contribution of 5.40% in 2023.”

According to NBS, the non-oil sector grew by 3.96% in real terms during the reference quarter (Q4 2024).

It added, “This rate was higher by 0.89% points compared to the rate recorded in the same quarter of 2023, which was 3.07%, and higher than the 3.37% recorded in the third quarter of 2024.

“This sector was driven in the fourth quarter of 2024 mainly by Financial and Insurance (Financial Institutions); Information and Communication (Telecommunications); Agriculture (Crop production); Transportation and Storage (Road Transport); Trade; and Manufacturing, accounting for positive GDP growth.

“In real terms, the non-oil sector contributed 95.40% to the nation’s GDP in the fourth quarter of 2024, higher than the share recorded in the fourth quarter of 2023, which was 95.30%, and higher than the third quarter of 2024, recorded as 94.43%.

“Moreover, an aggregate of 94.49% was contributed in 2024, lower than the 94.60% reported in 2023.”