Nigeria’s trade sector has declined for the third consecutive year, with Q4 2024 growth at 1.19% compared to 1.40% in 2023. Despite a quarterly rebound of 14.88% driven by seasonal spending, the sector’s contribution to GDP continues to fall, indicating ongoing economic challenges.
Nigeria’s trade sector has experienced significant contraction, marking its third straight year of decline due to adverse economic conditions. The National Bureau of Statistics (NBS) reported a year-on-year growth of only 1.19 percent in Q4 of 2024, a decrease from 1.40 percent in Q4 of 2023, and a stark contrast to the 4.54 percent growth in 2022 and 5.34 percent in 2021. Persistently high inflation, currency fluctuations, and weakened consumer spending have compounded difficulties in trade activities over recent years.
Despite the overall downward trend, a quarterly rebound was noted, with a 14.88 percent growth in trade activity in Q4 of 2024, an increase from just 0.65 percent in Q3 of the same year. This surge is largely attributed to heightened consumer spending around the holiday season. Overall GDP for the trade sector rose to N36.8 trillion in 2024, up from N27.4 trillion in 2023, although real growth rates continued to decline.
The sector’s contribution to GDP fell to 15.11 percent in Q4 of 2024, down from 15.50 percent in Q4 of 2023, indicating a diminishing role in economic performance. Annually, the trend is alarming, as the sector’s overall contribution to GDP decreased from 15.83 percent in 2023 to 15.46 percent in 2024. These figures demonstrate a worrying trajectory for Nigeria’s trade sector amidst ongoing economic challenges.
Nigeria’s trade sector is facing significant challenges, evident in three consecutive years of declining growth. The latest data reveals a minimal year-on-year growth while showcasing a rebound in quarterly performance due to seasonal factors. However, the decreasing contribution of trade to GDP highlights the need for effective economic strategies to address inflation, currency stability, and consumer confidence to revitalize this critical sector.
Original Source: businessday.ng
