Nigeria’s GDP Grows by 2.98% in Q1 2024, Driven by Services Sector

Nigeria’s Gross Domestic Product (GDP) grew by 2.98% in the first quarter of 2024 as the services sector sustained growth, the latest National Bureau of Statistics (NBS) report has shown.

This growth was higher when compared to the 2.31% recorded in the corresponding period of 2023, but lower than the 3.46% growth observed in the fourth quarter of 2023.

The report indicates that the services sector spearheaded this expansion as it grew by 4.32% in the period under review and contributed 58.04% of the aggregate GDP

Contrary to previous quarters, where the agriculture sector faced challenges, it rebounded modestly to post a 0.18% growth rate.

This positive performance marks a notable turnaround from the decline of -0.90% recorded in the first quarter of 2023.

Also, the industry sector recorded a growth rate of 2.19%, compared to the marginal 0.31% growth in the same period last year.

The aggregate GDP in nominal terms stood at N58,855,142.27 million for the first quarter of 2024.

Oil Sector First Quarter 2024

Delving into sectoral specifics, the oil sector posted a real growth rate of 5.70% year-on-year in Q1 2024.

Although this growth rate represents a decline from the previous quarter where it stood at 12.11%, the oil sector still contributed 6.38% of the total real GDP.

This performance revealed the sector’s continued importance despite ongoing global economic shifts and fluctuations in oil prices.

Non-oil Sector First Quarter

On the other hand, the non-oil sector expanded by 2.80% in real terms during the reference quarter.

This growth was predominantly driven by key sectors such as Financial and Insurance, Information and Communication, Agriculture, Trade, and Manufacturing.

In real terms, the non-oil sector contributed 93.62% to the nation’s GDP in the first quarter of 2024, lower than the share recorded in the first quarter of 2023 which was 93.79% and lower than the fourth quarter of 2023 recorded as 95.30%.

Despite the challenges posed by the global economic landscape and domestic factors, Nigeria’s GDP growth in the first quarter of 2024 shows resilience and potential for further expansion.