Nigeria’s Gross Domestic Product (GDP) saw a notable increase of 3.19% in the second quarter of 2024, according to the latest report from the National Bureau of Statistics (NBS). This growth rate marks an improvement over the 2.51% recorded in the same quarter last year and surpasses the 2.98% growth seen in the first quarter of 2024.
In its Q2 2024 report, the NBS highlighted that the GDP performance was primarily driven by a robust expansion in the services sector, which grew by 3.79% and contributed 58.76% to the total GDP. This sector’s strong performance significantly bolstered the overall economic growth.
The industry sector also showed substantial recovery, achieving a growth rate of 3.53% in Q2 2024, a sharp turnaround from the -1.94% contraction experienced in the second quarter of 2023. Conversely, the agriculture sector experienced a slight deceleration, growing by 1.41% compared to 1.50% in the same quarter of 2023.
Nominally, Nigeria's aggregate GDP at basic price stood at N60.93 trillion for Q2 2024, reflecting a year-on-year nominal increase of 16.94% from the N52.10 trillion recorded in Q2 2023.
Despite these gains, the non-oil sector exhibited signs of stagnation, growing by 2.80% in real terms during Q2 2024. This growth rate is consistent with Q1 2024 but is a decline from the 3.58% growth reported in Q2 2023. The non-oil sector’s contribution to the GDP stood at 94.30%, slightly down from 94.66% in the same quarter last year but up from 93.62% in Q1 2024.
Within the non-oil sector, growth was primarily driven by Financial and Insurance Services, Telecommunications, Agriculture (notably crop production), Trade, and Manufacturing (especially food, beverage, and tobacco). However, the sector's overall performance suggests limited diversification and growth concentration in a few industries.
In terms of oil production, Nigeria averaged 1.41 million barrels per day (bpd) in Q2 2024, a slight increase from 1.22 million bpd in Q2 2023 but a decline from the 1.57 million bpd recorded in Q1 2024. The oil sector’s contribution to GDP was 5.70%, up from 5.34% in Q2 2023 but down from 6.38% in Q1 2024. Despite the increase in real terms by 10.15% year-on-year, the sector faced a quarterly decline of 10.51%.
In a related development, the Information and Communications Technology (ICT) sector contributed 19.78% to Nigeria’s real GDP in Q2 2024, up from 19.54% in the same period last year. The sector grew by 4.44% year-on-year, with telecommunications leading the growth, contributing 16.36% to the GDP.
The health sector also saw a positive shift, with real GDP growth of 2.41% in Q2 2024, an increase from 1.95% in the same quarter of 2023. This growth, although robust, still reflected a modest contribution of 0.75% to the overall GDP, highlighting the need for further investment to enhance its economic impact.
The federal government has recently undertaken initiatives to strengthen the health sector, including partnerships to boost local pharmaceutical production and the establishment of new medical oxygen production facilities.
Overall, Nigeria's economic landscape shows a mixed picture with significant improvements in certain sectors but ongoing challenges, particularly within the non-oil sector and the oil production industry. The government's focus on diversifying the economy and addressing structural challenges will be crucial in sustaining and enhancing economic growth moving forward.
