GDP Growth 2024: Six Largest Sectors of the Nigerian Economy
The National Bureau of Statistics (NBS) recently released Nigeria's Gross Domestic Product (GDP) report for the third quarter of 2024.
According to the report, the Nigerian economy grew by 3.46% (year-on-year) in real terms, with an estimated value of N20.12 trillion.
This growth rate in 3rd quarter is higher than the 2.54% recorded in the third quarter of 2023 and higher than the second quarter of 2024 growth of 3.19%.
Source: Getty Images
The report also revealed that the growth recorded in the 3rd quarter was driven primarily by the Services sector, which expanded by 5.19%, contributing over 53.58% to the aggregate GDP.
The non-oil sector remained the backbone of growth, recording a 3.37% increase in real terms. Punch reports
Meanwhile, the oil sector achieved modest progress, expanding by 5.17% following a contraction in Q3 2023.
In the third quarter of 2024, the nation achieved an average daily oil production of 1.47 million barrels per day (mbpd), surpassing the 1.45 mbpd recorded in the same quarter of 2023 by 0.02 mbpd and exceeding the 1.41 mbpd recorded in the second quarter of 2024 by 0.07 mbpd.
The improvement of the Nigerian economy comes despite rising costs and the daily struggles of Nigerians.
In this article, Legit.ng highlights the major sectors that are the largest in the Nigerian economy in Q3 2024, focusing on those with over 4% real-term growth.
Financial and insurance30.83%
Nigeria’s finance and insurance sector is the largest in the economy and comprises two subsectors: financial institutions and insurance. In real terms, Financial Institutions accounted for 91.76% of the sector's output in Q3 2024, while insurance contributed 8.24%.
Overall, growth in this sector, in real terms, totalled 30.83%, reflecting an increase of 2.62 percentage points compared to Q3 2023 and a rise of 2.04 percentage points compared to the preceding quarter.
Source: Getty Images
Transportation and storage 12.15%
The transportation and storage sector comprises six activities: road transport, rail transport and pipelines, water transport, air transport, transport services, and post and courier services.
In real terms, the Transportation and Storage sector grew by 12.15% in Q3 2024.
This growth represents an increase of 47.99 percentage points compared to the same quarter in the previous year and an increase of 25.68 percentage points relative to the preceding quarter. Quarter-on-quarter growth was 35.07%.
The sector's contribution to real GDP in Q3 2024 was 0.91%, up from 0.84% in the same quarter of the previous year and 0.74% in the second quarter of 2024.
Water supply, sewerage, waste management and remediation 9.78%
The real growth rate of the Water Supply, Sewerage, Waste Management and Remediation sector in the third quarter of 2024 was 9.78% (year-on-year), lower by 2.16% points from the rate recorded in the previous year.
The sector's contribution to total real GDP was 0.22% in the third quarter of 2024, slightly higher than the 0.20% recorded in the same quarter of the previous year but lower than the 0.44% contribution in the immediate past quarter.
Source: Getty Images
Information and communication 5.92%
The Information and Communication sector comprises four activities: Telecommunications and Information Services, Publishing, Motion Picture, Sound Recording and Music Production, and Broadcasting.
In the third quarter of 2024, the sector recorded a growth rate of 5.92% in real terms, year-on-year. This represented a decrease of 0.77 percentage points compared to the corresponding period of 2023. The sector exhibited a decline of 9.02% in real terms on a quarter-on-quarter basis.
The sector contributed 16.35% to total real GDP in Q3 2024, higher than the 15.97% recorded in the same quarter of the previous year but lower than the 19.78% contribution in the preceding quarter.
Source: Getty Images
Arts, entertainment and recreation 4.74%
In real terms, the arts, entertainment, and recreation sector grew by 4.74% year-on-year, 0.29 percentage points higher than the rate recorded in Q3 2023 and 2.95 percentage points higher than the preceding quarter. Quarter-on-quarter, growth stood at 8.31% in real terms.
Accommodation and food services 4.44%
The real year-on-year growth rate of the accommodation and food Services sector in the third quarter of 2024 stood at 4.44%, an increase of 0.87 percentage points from the 3.57% recorded in the previous year.
Compared to the preceding quarter, the growth rate was 2.31 percentage points higher than the 2.13% recorded. Quarter-on-quarter, real growth was 103.88%.
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