Nigeria’s GDP expanded by 3.84% in Q4 2024, driven by sectors like crop production (23.42%), trade (15.11%), and telecommunications (14.40%). Despite growth, inflation and economic challenges persist, prompting plans for a GDP rebasing in 2025 to enhance economic accuracy.
In the fourth quarter of 2024, Nigeria’s economy saw substantial growth, with a 3.84% year-on-year increase in its Gross Domestic Product (GDP), as noted in the latest report from the National Bureau of Statistics (NBS). Key contributors to this growth included crop production, trade, and telecommunications, alongside seven other sectors. Notably, the services sector achieved a remarkable 5.37% growth, significantly impacting the overall GDP by accounting for 57.38%.
Specifically, crop production emerged as the leading sector, contributing 23.42% to GDP. Despite experiencing a slight decrease from 26.86% in Q4 2023, it maintained its position as a critical economic driver. The trade sector followed with a 15.11% contribution, although its growth rate slowed to 1.19% from 1.40%, reflecting robust consumer demand and border trade.
Telecommunications and information services also showed strong performance, with a 14.40% GDP contribution and growth stabilization at 6.81%. Real estate services contributed 5.88%, driven by urbanization and investment in commercial properties, while financial institutions contributed 5.76% as digital banking and financial inclusion rise.
The oil sector, which traditionally plays a vital role in Nigeria’s economy, recorded a minor increase of 1.48%, contributing 4.60% to GDP, impacted by volatile global prices. The food, beverage, and tobacco industry contributed 4.08%, showing growth from the previous quarter, while construction accounted for 3.44% of GDP, fueled by ongoing infrastructure projects.
Other sectors, including professional, scientific, and technical services, contributed 3.21% to GDP with steady growth in consultancy and engineering services. Additionally, various service industries expanded, with other services recording a solid 3.80% share of GDP, up significantly from the previous year.
Despite these promising statistics, analysts caution that concerning economic indicators such as inflation, currency depreciation, and high borrowing costs still reveal a disconnect between macroeconomic growth and everyday life for Nigerians. Experts anticipate that Nigeria’s plan to rebase its GDP in 2025 will provide clearer insights into economic performance and structural changes within the economy.
In conclusion, Nigeria’s GDP growth in Q4 2024 was significantly bolstered by crop production, trade, and telecommunications, highlighting the economy’s reliance on these sectors. Despite strong overall performance, challenges persist, indicating a discrepancy between economic indicators and the lived experiences of citizens. Reassessing the GDP in 2025 aims to address these inconsistencies and reflect more accurately the evolving economic landscape.
Original Source: businessday.ng
