Nigeria’s gross domestic product (GDP) expanded by 3.84% in the fourth quarter of 2024, marking an improvement over the 3.46% growth recorded in the previous quarter. This data was published in a recent report by the National Bureau of Statistics (NBS) on Tuesday, highlighting a stronger economic performance compared to the same period in 2023, which also saw a 3.46% growth rate.
Services Sector Leads Growth
According to the NBS report, the services sector played a pivotal role in driving GDP expansion, achieving a growth rate of 5.37% and contributing 57.38% to the nation’s total economic output in Q4 2024.
Agricultural and Industrial Sector Performance
While the agriculture sector recorded a 1.76% growth rate in Q4 2024, this was a slight decline from the 2.10% seen in the corresponding quarter of 2023. Meanwhile, the industrial sector experienced a slowdown, growing at 2.00%, a drop from the 3.86% recorded in Q4 2023.
Annual GDP Growth and Oil Production Trends
For the full year, Nigeria’s GDP grew by 3.40% in 2024, up from 2.74% in 2023, indicating sustained economic expansion despite sectoral fluctuations.
However, oil production levels declined slightly in Q4 2024. The nation produced an average of 1.54 million barrels per day (mbpd), a marginal decrease from the 1.56 mbpd recorded in Q4 2023 but an improvement over the 1.47 mbpd produced in Q3 2024.
Inflation Rate Sees a Significant Drop
In a positive economic development, Nigeria’s inflation rate fell sharply to 24.48% year-on-year in January 2025, down from 34.80% in December 2024. The Consumer Price Index (CPI), which measures the rate of price changes in goods and services, reflected this notable decline.
Economic Outlook
The report signals a steady recovery in Nigeria’s economy, supported by growth in the services sector and easing inflation. However, the decline in industrial output and oil production highlights the need for structural reforms to sustain long-term economic stability.
