The Nigerian economy recorded a growth rate of 3.46% in the third quarter of 2024, with total output rising to ₦20.115 trillion, up from 3.19% (₦18.285 trillion) in the preceding quarter.
This marked the third consecutive quarterly expansion, fueled by significant contributions from the non-oil sector.
According to the Central Bank of Nigeria’s (CBN) Economic Report for Q3 2024, the economy’s performance was bolstered by efforts to enhance the business environment, streamline processes, and deepen infrastructure quality.
The report also noted improved inflation dynamics, credited to a decline in food prices and a restrictive monetary policy stance.
The non-oil sector drove overall growth, accelerating to 3.37% compared to 2.80% in Q2 2024, with notable expansions in the financial & insurance, information & communication, trade, transportation & storage, and real estate sub-sectors. The sector contributed 3.18 percentage points to the total GDP growth.
The oil sector maintained positive growth for the fourth consecutive quarter, supported by increased crude oil production from 1.27 million barrels per day (mbpd) in Q2 2024 to 1.33 mbpd in Q3 2024. Enhanced security measures in the Niger Delta region played a pivotal role in achieving this milestone.
However, the sector’s growth slowed to 5.17% (year-on-year), down from 10.15% in the previous quarter, due to declining prices of Bonny Light crude oil in the international market.
The services sector emerged as the strongest performer, expanding by 5.19% in Q3 2024 and accounting for 53.58% of the aggregate GDP. The financial & insurance sub-sector experienced a 30.83% growth, driven by gains from the CBN’s recapitalization exercise and increased interest-related profits.
Digital transformation in the financial sector further boosted the information and communications sub-sector, which grew by 5.92%.
Transport and storage recorded a robust growth rate of 12.15%, reflecting improved road security and investments in alternative energy sources like compressed natural gas (CNG).
The agriculture sector grew modestly by 1.14%, supported by favorable weather conditions and increased crop harvests. However, the fishing sub-sector contracted by 1.91%, following a marginal growth of 0.38% in Q2 2024.
The industrial sector grew by 2.18%, driven by improvements in mining, quarrying, and crude oil production. Water supply and waste management activities also contributed positively, while the mining and quarrying sub-sector faced significant contractions.
Despite global and domestic challenges, the CBN emphasized the resilience of the Nigerian economy, projecting sustained growth as government efforts to improve infrastructure, enhance business conditions, and secure vital industries continue.
