Nigeria’s GDP Grows 3.19% in Q2 2024
By Patience Ikpeme
Nigeria’s Gross Domestic Product (GDP) recorded a year-on-year growth of 3.19% in real terms during the second quarter of 2024, according to the latest report from the National Bureau of Statistics (NBS).
This marks an improvement from the 2.51% growth registered in the corresponding period of 2023 and a slight increase from the 2.98% growth seen in the first quarter of 2024.
A key driver of this growth was the robust performance of the services sector, which contributed a substantial 58.76% to the overall GDP, with a year-on-year growth rate of 3.79%. The sector’s dominant role in the economy is underscored by its substantial impact on GDP, further reflecting the ongoing structural shift towards a more service-oriented economy.
Despite facing challenges, the agriculture sector managed to grow by 1.41% in Q2 2024, slightly down from the 1.50% growth in Q2 2023. This sector, which remains vital for employment and food security, accounted for 22.61% of the GDP. The sector’s performance was better than in Q1 2024, where it grew by just 0.18%.
The industry sector showed a marked improvement with a growth rate of 3.53%, a significant recovery from the contraction of -1.94% recorded in Q2 2023. This recovery indicates a resurgence in industrial activities, potentially driven by both domestic demand and export-oriented production.
The manufacturing sector, however, painted a less optimistic picture. It grew by just 1.28% year-on-year, a decline from the previous year and the preceding quarter. The sector’s quarter-on-quarter growth stood at -15.16%, reflecting ongoing challenges in manufacturing, such as supply chain disruptions and fluctuating input costs. Its contribution to the GDP was 8.46%, slightly lower than the 8.62% in Q2 2023 and significantly lower than the 9.98% recorded in Q1 2024.
The construction sector contributed 3.17% to GDP in Q2 2024, a slight decrease from its 3.23% contribution in Q2 2023 and a sharper decline from the 4.01% seen in Q1 2024. This downturn could be linked to reduced government spending on infrastructure projects or a slowdown in private sector construction activities.
Trade, another critical sector, accounted for 16.39% of the GDP, a slight drop from the 16.80% contribution in Q2 2023 but an improvement from the 15.70% recorded in the first quarter of 2024. The sector’s resilience suggests steady consumer demand and an uptick in commercial activities.
This sector continues to play a pivotal role in Nigeria’s economic transformation. It grew by 4.44% year-on-year, contributing 19.78% to the GDP in Q2 2024. This was higher than both the 19.54% recorded in Q2 2023 and the 17.89% contribution in Q1 2024. The sector’s quarter-on-quarter growth of 10.60% highlights the increasing importance of digital services and telecommunications in the economy.
The oil sector, which has historically been a major contributor to Nigeria’s GDP, contributed 5.70% to the total real GDP in Q2 2024. This was an increase from the 5.34% recorded in Q2 2023 but a slight decline from the 6.38% contribution in Q1 2024. The non-oil sector, on the other hand, contributed a significant 94.30% to the GDP, reflecting the economy’s ongoing diversification efforts. This was slightly lower than the 94.66% share in Q2 2023 but an improvement from the 93.62% recorded in the first quarter of 2024.
In nominal terms, the aggregate GDP stood at N60.93 trillion in Q2 2024, a significant increase from the N52.10 trillion recorded in Q2 2023, representing a year-on-year nominal growth of 16.94%. This robust nominal growth indicates that the economy is expanding in both real and monetary terms, although inflationary pressures may still be a concern.
The latest GDP figures underscore Nigeria’s gradual but steady economic recovery, driven largely by the services sector and a notable rebound in industrial activities. However, the mixed performance across different sectors, particularly in manufacturing and construction, suggests that challenges remain. Continued diversification of the economy, coupled with targeted policies to bolster weaker sectors, will be crucial for sustaining and accelerating growth in the coming quarters.
