Nigeria’s GDP Grows 3.19% in Q2 2024, Driven by Services Sector

Samuel Mobolaji

Nigeria’s Gross Domestic Product (GDP) recorded a robust year-on-year growth of 3.19 per cent in real terms for the second quarter of 2024, surpassing the 2.51% growth achieved in the same quarter of 2023 and the 2.98 per cent seen in Q1 2024.

The growth was predominantly fueled by the Services sector, which expanded by 3.79 per cent and accounted for 58.76 per cent of the total GDP. This strong performance marked a significant contribution to the overall economic growth. In contrast, the agriculture sector grew by 1.41 per cent, a slight decline from the 1.50 per cent growth observed in Q2 2023.

The industry sector showed remarkable improvement, growing by 3.53 per cent compared to a -1.94 per cent decline in Q2 2023. This resurgence highlights a recovery in industrial activities, contributing more substantially to the GDP.

The oil sector, while contributing 5.70 per cent to the GDP in Q2 2024—up from 5.34 per cent in Q2 2023 but down from 6.38 per cent in Q1 2024—demonstrated significant growth of 10.15 per cent year-on-year. This marks a notable turnaround from the -13.43 per cent decline in the same quarter of 2023.

However, the sector saw a quarter-on-quarter decline of -10.51 per cent in growth. Nigeria’s average daily oil production was 1.41 million barrels per day (mbpd), up from 1.22 mbpd in Q2 2023 but lower than the 1.57 mbpd recorded in Q1 2024.

The non-oil sector, which contributed 94.30 per cent to the GDP in Q2 2024, exhibited a real growth of 2.80 per cent. Although this is a slight decrease from the 94.66 per cent share and 3.58 per cent growth seen in Q2 2023, it is an improvement over the 93.62 per cent contribution and 2.80 per cent growth recorded in Q1 2024. Key drivers of this growth included Financial and Insurance Services, Information and Communication, Agriculture, Trade, and Manufacturing, particularly in Food, Beverage, and Tobacco sectors.

Overall, the second quarter of 2024 reflects a resilient economic performance, with significant contributions from the Services and Industry sectors, and a notable rebound in the oil sector despite some quarterly volatility.