Nigeria’s economy continues to show resilience as the country’s Gross Domestic Product (GDP) recorded a significant growth of 3.84% in the fourth quarter of 2024, according to the latest report from the National Bureau of Statistics (NBS). This marks an improvement over the 3.46% recorded in Q3 2024 and the corresponding quarter of 2023.
Key Drivers of GDP Growth
Services Sector Leads Growth
The report highlights that the Services sector was the primary driver of GDP growth, expanding by 5.37% and contributing 57.38% to the total GDP. This sector’s robust performance played a crucial role in the overall economic expansion.
Agriculture and Industry Sectors
Agriculture Sector: The sector experienced a modest growth of 1.76%, slightly lower than the 2.10% recorded in Q4 2023.
Industry Sector: Growth in the industry sector stood at 2.00%, a decline from 3.86% recorded in Q4 2023.
Annual GDP Growth Performance
The report further states that Nigeria’s annual GDP growth for 2024 was 3.40%, an improvement from 2.74% in 2023. This positive trajectory reflects increased economic activity despite various challenges.
Oil Production Trends
Nigeria’s oil production slightly declined in Q4 2024 compared to the previous year.
The country recorded an average daily oil production of 1.54 million barrels per day (mbpd), a 0.03 mbpd decrease from 1.56 mbpd in Q4 2023.
However, production increased by 0.06 mbpd compared to 1.47 mbpd in Q3 2024.
Inflation Rate Decline
Last week, the NBS reported a significant drop in Nigeria’s headline inflation, which fell to 24.48% year on year in January 2025, marking a sharp decline from 34.80% in December 2024.
The Consumer Price Index (CPI), which measures the rate of change in the prices of goods and services, also showed a marked improvement, reflecting a more stable economic environment.
Nigeria’s economy demonstrated strong resilience in 2024, with an impressive 3.84% GDP growth in Q4, a 3.40% annual growth rate, and a notable drop in inflation. The services sector emerged as the key driver of growth, while the agriculture and industry sectors contributed moderately. The country’s oil production levels remained stable, but challenges persist. Moving forward, sustaining this economic momentum will require strategic policies and continued investment in key growth sectors.
