In the final quarter of 2024, Nigeria’s economy demonstrated a significant acceleration, achieving its strongest growth in three years, largely driven by the services sector, as reported on Tuesday.
The gross domestic product (GDP) increased by 3.84% year-on-year, exceeding the 3.46% growth observed in the preceding quarter, along with the 3.19% and 2.98% rises recorded in the second and first quarters, respectively.
This remarkable performance underscores a substantial recovery in economic activity as the nation transitions into 2024.
The National Bureau of Statistics indicated that the services sector was pivotal in this growth, expanding by 5.37% compared to the same period last year.
For the entire year of 2024, the growth rate reached 3.40%, a significant rise from the 2.74% noted in 2023.
Nonetheless, this growth remains below the ambitious 6% target established by President Bola Tinubu upon his assumption of office in mid-2023, highlighting ongoing challenges in achieving the desired economic progress in Africa’s most populous country.
To better reflect current economic realities, Nigeria intends to rebase its GDP figures, akin to the recent adjustments made to its Consumer Price Index.
This rebasing will consider the substantial growth in various sectors, including the marine economy, arts, culture, tourism, information technology, and e-commerce, all of which have experienced considerable expansion since the last update in 2014.
While these adjustments previously enabled Nigeria to overtake South Africa as Africa’s largest economy, recent devaluations of the naira have presented challenges under Tinubu’s administration, despite the World Bank’s observation that the country is starting to reap the benefits of the bold reforms initiated early in his tenure.
In the last quarter of 2024, Nigeria’s average daily oil production was recorded at 1.54 million barrels, showing little change from the previous year’s figure of 1.56 million barrels, according to the latest data.
The consistent oil production levels illustrate the persistent challenges and evolving dynamics within the industry.
In contrast, the agricultural sector recorded a growth rate of 1.76%, signifying a slight yet encouraging trend in food production and associated activities.
Furthermore, industrial output experienced a stronger growth of 2.00%, indicating that manufacturing and other industrial sectors are gaining traction within the economy.
Looking forward, the International Monetary Fund anticipates that Nigeria’s economy will expand by 3.2% this year.
This projection underscores a promising outlook for the country, fueled by advancements across various sectors and a potential rebound from earlier economic difficulties.
