Nigeria’s economy grew by 3.46% in the third quarter of 2024, surpassing the 3.19% recorded in Q2, according to the National Bureau of Statistics (NBS). President Bola Tinubu hailed the report as evidence of progress, pledging continued reforms to ensure shared prosperity and improved living standards.
Top Sectors Driving Growth
Key contributors to Q3 GDP included:
- Agriculture (28.65%)
- ICT (16.35%)
- Trade (14.78%)
- Manufacturing (8.21%)
- Crude Oil (5.57%)
- Finance and Insurance (5.51%)
- Real Estate (5.43%)
The economy grew year-on-year by 0.92%, higher than the 2.54% recorded in Q3 2023. In real terms, GDP stood at ₦20.12 trillion, up from ₦18.29 trillion in Q2 2024 and ₦19.44 trillion in Q3 2023.
Non-Oil Sector Leads Growth
The non-oil sector accounted for 94.43% of GDP in Q3, driven by crop production, trade, telecommunications, and real estate. It grew by 3.37% in real terms, compared to 2.80% in Q2. Meanwhile, the oil sector contributed 5.57%, with crude oil production averaging 1.47 million barrels per day (mbpd), slightly up from 1.41 mbpd in Q2.
Presidential Commitment to Economic Prosperity
President Tinubu praised the GDP growth as a sign of recovery from the unintended impacts of economic reforms. He reaffirmed his administration’s goal of achieving a $1 trillion economy by 2030, with plans to rebase the economy by early 2025 to reflect changes in key sectors.
“We won’t rest until Nigerians feel the positive impacts in their pockets and experience a better living standard,” Tinubu said.
The president highlighted reforms, including floating the naira and removing petroleum subsidies, as steps toward fiscal discipline and economic stability.
Challenges in Manufacturing and Agriculture
Despite positive growth, financial experts noted challenges:
- Manufacturing contributed 8.21% to GDP, but its growth of 3.62% year-on-year reflects struggles under high interest and exchange rates.
- Agriculture saw a slight decline in growth, contributing 28.65% compared to 29.31% in Q3 2023.
Prof. Uche Uwaleke, a financial analyst, criticized the dominance of the services sector over productive sectors like industry and agriculture, calling for structural economic reforms.
“Economic growth does not appear inclusive, reflecting in rising unemployment and poverty levels,” Uwaleke observed.
Labour Market Trends
The Nigeria Labour Force Survey (NLFS) reported an increase in labor force participation to 79.5% in Q2 2024 from 77.3% in Q1. The combined unemployment and underemployment rate dropped to 13%, with informal employment remaining high at 93%.
Looking Ahead
With GDP growth driven by non-oil sectors and reforms in place to stabilize fiscal management, experts anticipate further improvements in Nigeria’s economic landscape. However, addressing structural imbalances and supporting productive sectors will be crucial for sustainable and inclusive growth.
