GDP: 10 Fastest Growing Sectors of the Nigerian Economy
The National Bureau of Statistics has revealed that Nigeria’s Gross Domestic Product (GDP) grew 3.40% in 2024.
This growth rate in 2024 is higher than the 2.74% recorded for the full year 2023 and also the highest annual level achieved in the last three years.
NBS data on 2024's quarterly performance showed that the economy grew by 3.84% in the fourth quarter.
Source: Getty Images
This growth rate is higher than the 3.46% recorded in the fourth quarter of 2023 and the third quarter of 2024 growth rate (approximately 3.46%).
Also in the second and first quarter of 2024, Nigeria's GDP rate was 3.19% and 2.98% respectively.
The GDP report also revealed that the services sector contributed significantly to the positive performance of Nigeria's GDP in2024, accounting for 56.89% of the growth rate
Legit.ng explores Nigeria's fastest-growing sectors in 2024, revealing the industries driving the nation's economic growth.
1 Metal Ores- 75.23%
The metal ore sector recorded a significant growth rate of 75.23%, reflecting a 24.91 percentage point improvement from the 50.32% recorded in 2023.
This sector’s impressive growth highlights the rising global demand for natural resources. Examples of metal ores include bauxite, iron ore, copper ore, and gold ore.
However, the metal ore sector faces several challenges, including illegal mining activities, environmental degradation, infrastructure deficits, security concerns in mining areas, and policy-related issues.
2- Rail Transport & Pipelines - 44.14%
The railway sector recorded the most impressive growth among all sectors, surging from a negative growth rate of -1.97% in 2023 to 44.14% in 2024.
In 2024, Nigeria's railway sector growth rate surpassed that of the overall transport sector.
This remarkable expansion was driven by the revival of key railway routes, such as the Port Harcourt-Aba and Lagos-Kano rail lines.
The rising costs of road and air transportation also made rail travel an attractive alternative for interstate commuters.
3- Financial institutions - 30.89%
The financial institutions sector, which ranked as the second highest-contributing sector in 2023, dropped to third place in 2024.
However, its growth rate of 30.89% in 2024 outpaced the previous year’s rate of 28.86%.
4- Financial and Insurance - 29.57%
The financial sector comprises a wide range of firms and institutions that provide financial services to commercial and retail customers.
According to NBS data, the financial and insurance sector recorded a 29.57% growth rate in 2024, up from 26.53% in 2023.
5- Insurance - 14.42%
Another sector that recorded significant growth is the insurance industry, which expanded to 14.42% in 2024, up from 4.82% in 2023.
The insurance sector consists of companies that offer risk management solutions through insurance contracts.
Source: Twitter
6- Water Transport - 11.58%
The water transport sector saw growth in 2024 as more Nigerians turned to alternative travel options amid rising transportation costs.
Data shows that the sector grew from 8.38% in 2023 to 11.58% in 2024.
7- Road Transport - 8.89%
The road transport sector plays a crucial role in social and economic development by ensuring passenger and freight mobility across states.
In 2024, the sector rebounded to 8.89%, recovering from a significant decline of -35.91% in 2023.
8- Water Supply, Sewerage, Waste Management, and Remediation - 8.40%
Access to clean water and effective waste management remains essential.
Although the sector recorded an 8.40% growth rate in 2024, this was a decline from 12.65% in 2023, highlighting the ongoing need for public health and sanitation improvements.
9- Transportation and Storage - 6.53%
This category includes passenger and freight transport via rail, pipeline, road, water, or air, as well as associated activities such as terminal operations, parking facilities, cargo handling, and storage.
The sector recorded a 6.53% growth rate in 2024, improving from a negative growth rate of -30.17% in 2023.
10- Crude Petroleum and Natural Gas - 6.53%
The crude petroleum and natural gas sector remained the main contributor to Nigeria's oil industry, recording a growth rate of 6.53% in 2024.
In 2023, the sector was in negative territory, closing the year at -2.22%.
CBN targets single-digit inflation rate
Legit.ng previously reported that the Central Bank of Nigeria has disclosed that it has a target to tame inflation and bring it down to single-digit rates.
The CBN Governor, Olayemi Cardoso, made this known at the press conference after the 299th Monetary Policy Committee (MPC) meeting.
Cardoso explained that CBN will stick to orthodox monetary policies as it had done in the past, to curb inflation in Nigeria.
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Source: Legit.ng
