Tayo Busayo, Abuja
DAILY COURIER - Nigeria’s economy grew by 3.84% in the fourth quarter of 2024, marking a significant improvement from the 3.46% growth recorded in both the third quarter of 2024 and the fourth quarter of 2023, according to a report released by the National Bureau of Statistics (NBS) on Tuesday. The growth was primarily driven by a robust performance in the services sector, which expanded by 5.37% and contributed 57.38% to the nation’s aggregate GDP.
The agriculture sector also showed resilience, growing by 1.76%, albeit slower than the 2.10% growth recorded in the same quarter of 2023. Meanwhile, the industrial sector experienced a slowdown, with growth declining to 2.00% from 3.86% in the previous year.
Despite the overall economic growth, Nigeria’s oil production levels dipped slightly, averaging 1.54 million barrels per day (mbpd) in Q4 2024, compared to 1.56 mbpd in the same period of 2023. However, this was an improvement from the 1.47 mbpd recorded in Q3 2024.
The NBS report also highlighted a decline in headline inflation, which dropped to 24.48% year-on-year in January 2025, down from 34.80% in December 2024. This marks a significant easing of inflationary pressures, as measured by the Consumer Price Index (CPI).
Overall, Nigeria’s annual GDP growth for 2024 stood at 3.40%, up from 2.74% in 2023, signaling a gradual recovery in the nation’s economic performance.
The services sector emerged as the primary driver of Nigeria’s economic growth in Q4 2024, contributing 57.38% to the GDP. This underscores the sector’s increasing importance in the nation’s economic landscape, particularly in areas such as telecommunications, finance, and trade. The sector’s growth of 5.37% reflects increased activity and investment in these key areas, which have become critical to Nigeria’s economic diversification efforts.
The agriculture sector grew by 1.76% in Q4 2024, reflecting sustained activity in crop production and livestock farming. However, the growth rate was slower than the 2.10% recorded in the same period of 2023, highlighting challenges such as insecurity, climate change, and limited access to modern farming technologies. Despite these hurdles, agriculture remains a vital component of Nigeria’s economy, providing employment for a significant portion of the population and contributing to food security.
The industrial sector’s growth declined to 2.00% in Q4 2024, down from 3.86% in the previous year. This slowdown may be attributed to reduced manufacturing output and lower contributions from mining and quarrying activities. The sector’s performance reflects broader challenges, including inadequate infrastructure, power shortages, and fluctuating global commodity prices, which have hindered industrial productivity.
Nigeria’s oil production averaged 1.54 mbpd in Q4 2024, slightly lower than the 1.56 mbpd recorded in the same period of 2023. While the figure represents a marginal improvement from Q3 2024, it underscores ongoing challenges in the oil sector, including pipeline vandalism, underinvestment, and regulatory uncertainties. The oil sector remains a critical source of government revenue, but its volatility continues to pose risks to Nigeria’s economic stability.
The NBS reported a sharp decline in headline inflation, which dropped to 24.48% in January 2025 from 34.80% in December 2024. This decline, driven by lower food and energy prices, provides some relief to households and businesses grappling with rising costs. The easing of inflationary pressures is a positive development, but structural issues such as high transportation costs and currency depreciation remain key concerns.
Nigeria’s annual GDP growth for 2024 stood at 3.40%, up from 2.74% in 2023. This improvement reflects a gradual recovery in economic activities, although structural challenges such as infrastructure deficits, unemployment, and low productivity continue to hinder faster growth. The government’s efforts to implement economic reforms and attract foreign investment will be critical in addressing these challenges and sustaining the nation’s economic recovery.
The latest NBS report highlights Nigeria’s resilient economic performance in 2024, driven by a strong services sector and improved agricultural output. However, the slowdown in industrial growth and persistent challenges in the oil sector underscore the need for targeted reforms to sustain the nation’s economic recovery and address underlying structural issues. As Nigeria navigates these challenges, the focus on diversification, infrastructure development, and policy stability will be key to achieving long-term economic growth and stability.
