In the fourth quarter of 2024, Nigeria’s economy experienced a notable acceleration, marking its most robust growth in three years, primarily fueled by the services sector, according to data released on Tuesday.
The gross domestic product (GDP) rose by 3.84% year-on-year, surpassing the 3.46% growth recorded in the previous quarter, as well as the 3.19% and 2.98% increases seen in the second and first quarters, respectively.
This impressive performance highlights a significant rebound in economic activity as the country moves into 2024.
The National Bureau of Statistics reported that the services sector was the driving force behind this growth, expanding by 5.37% compared to the same period last year.
Overall, the full-year growth rate for 2024 reached 3.40%, a notable increase from the 2.74% recorded in 2023.
However, this growth still falls short of the ambitious 6% target set by President Bola Tinubu upon taking office in mid-2023, reflecting ongoing challenges in achieving the desired economic momentum in Africa’s most populous nation.
To better align its economic data with current realities, Nigeria plans to rebase its GDP figures, similar to the recent adjustments made for its Consumer Price Index.
This rebasing will take into account the significant growth in various sectors, including the marine economy, arts, culture, tourism, information technology, and e-commerce, which have all seen substantial expansion since the last update in 2014.
While these adjustments previously allowed Nigeria to surpass South Africa as Africa’s largest economy, recent naira devaluations have posed challenges under Tinubu’s administration, despite the World Bank noting that the country is beginning to benefit from the bold reforms implemented early in his tenure.
In the last quarter of 2024, Nigeria’s average daily oil production stood at 1.54 million barrels, showing minimal variation from the previous year’s figure of 1.56 million barrels, according to the latest data.
This stability in oil output reflects the ongoing challenges and dynamics within the sector.
Meanwhile, the agricultural sector experienced a growth rate of 1.76%, indicating a modest but positive trend in food production and related activities.
Additionally, industrial output saw a more robust expansion of 2.00%, suggesting that manufacturing and other industrial activities are gaining momentum in the economy.
Looking ahead, the International Monetary Fund projects that Nigeria’s economy will grow by 3.2% this year.
This forecast highlights a hopeful outlook for the nation, driven by improvements in various sectors and a potential recovery from previous economic challenges.
