Nigerias GDP Grows by 3.19% in Q2 2024, Driven by Services Sector

Nigeria’s economy continues to show signs of resilience, with the nation’s Gross Domestic Product (GDP) expanding by 3.19% in the second quarter of 2024. The growth, which outpaces both the 2.51% recorded in Q2 2023 and the 2.98% seen in Q1 2024, was primarily fueled by a robust performance in the Services sector. According to the latest report from the National Bureau of Statistics (NBS), the Services sector played a pivotal role in driving the GDP growth, expanding by 3.79% and contributing an impressive 58.76% to the overall GDP. This sector's strong performance underscores its increasing significance in the Nigerian economy. The agriculture sector, which has historically been a cornerstone of Nigeria’s economy, experienced modest growth during the quarter. It expanded by 1.41%, slightly below the 1.50% growth rate recorded in the same quarter of 2023. Despite the slight dip, agriculture remains a critical contributor to Nigeria's economic stability.

In contrast, the Industry sector experienced a significant rebound, growing by 3.53% compared to a contraction of -1.94% in Q2 2023. This recovery highlights the sector’s potential for driving future economic growth, particularly in areas like manufacturing and construction. The report also revealed that Nigeria’s aggregate GDP at basic price stood at N60.93 trillion in nominal terms, a substantial increase from the N52.10 trillion recorded in Q2 2023. This represents a year-on-year nominal growth of 16.94%, reflecting the country's ongoing economic recovery. In terms of real GDP, the value stood at N18.29 trillion, marginally higher than the N18.28 trillion recorded in Q1 2024. The oil sector, despite facing challenges, contributed 5.70% to the total real GDP in Q2 2024. The sector saw a significant year-on-year growth of 10.15%, a notable improvement from the -13.43% recorded in the corresponding quarter of 2023. However, on a quarter-on-quarter basis, the oil sector experienced a decline, with a growth rate of -10.51% in Q2 2024.

The non-oil sector, which is increasingly becoming the backbone of Nigeria’s economy, grew by 2.80% in real terms during the quarter. Although this was slightly lower than the 3.58% growth recorded in Q2 2023, it matched the growth rate from Q1 2024. The non-oil sector's growth was driven by key industries such as Financial and Insurance services, Information and Communication, Agriculture (particularly Crop production), Trade, and Manufacturing, including Food, Beverage, and Tobacco. The non-oil sector contributed a substantial 94.30% to Nigeria’s GDP in Q2 2024, slightly lower than the 94.66% recorded in Q2 2023 but higher than the 93.62% seen in Q1 2024. This data highlights the sector's critical role in sustaining Nigeria’s economic momentum. As Nigeria continues to navigate the complexities of global economic challenges, the positive GDP growth in Q2 2024 is a testament to the country's resilience and potential for future growth. The focus on diversifying the economy away from oil dependence appears to be yielding results, with the Services and non-oil sectors driving significant economic activity.