By Joke Kujenya
NIGERIA’S ECONOMY experienced a year-on-year GDP growth of 2.98% in the first quarter of 2024, up from 2.31% in the same period last year but down from 3.46% in the previous quarter, the National Bureau of Statistics (NBS report has revealed.
The reports also reveal that Services sector was the main driver of this growth, expanding by 4.32% and contributing 58.04% to the total GDP.
It says the agriculture sector showed a slight recovery with a 0.18% growth, up from a contraction of 0.90% in Q1 2023, while the industry sector improved to 2.19% growth from 0.31% in the same period last year.
The nominal GDP for Q1 2024 was N58.86 trillion, marking a 14.86% increase from N51.24 trillion in Q1 2023 as Nigeria’s economy continues to be broadly classified into oil and non-oil sectors for analytical purposes.
Oil Sector Performance
In Q1 2024, Nigeria’s oil production averaged 1.57 million barrels per day (mbpd), slightly higher than the 1.51 mbpd in Q1 2023 and the 1.55 mbpd in Q4 2023. The oil sector recorded a real growth of 5.70% year-on-year, a significant increase from the -4.21% contraction in Q1 2023, though lower than the 12.11% growth in Q4 2023. The sector’s quarter-on-quarter growth was 13.77%, contributing 6.38% to the total real GDP, up from 6.21% in Q1 2023 and 4.70% in the previous quarter.
Non-Oil Sector Dynamics
The non-oil sector grew by 2.80% in real terms in Q1 2024, marginally higher than the 2.78% growth in Q1 2023 but lower than the 3.08% growth in Q4 2023.
Key contributors included Financial and Insurance Services, Information and Communication, Agriculture, Trade, and Manufacturing. This sector accounted for 93.62% of the total GDP in Q1 2024, slightly down from 93.79% in Q1 2023 and 95.30% in Q4 2023.
Sector-Specific Insights
Mining & Quarrying: This sector grew by 34.14% in nominal terms and 6.30% in real terms year-on-year in Q1 2024, driven mainly by Crude Petroleum and Natural Gas. Its contribution to GDP increased to 7.86%, up from 6.73% in Q1 2023.
Agriculture: The sector saw a nominal growth of 0.77% year-on-year in Q1 2024, a decrease from the 5.24% growth in Q1 2023. Crop Production remained the dominant sub-sector.
Manufacturing: The sector’s nominal GDP growth was 8.21% year-on-year in Q1 2024, down from 17.85% in Q1 2023. Real growth stood at 1.49%, with a contribution of 9.98% to GDP.
Electricity, Gas, Steam and Air Conditioning Supply: This sector’s nominal growth was 17.95% year-on-year, while real growth contracted by -5.43%. Its GDP contribution was 0.41%.
Water Supply, Sewerage, Waste Management and Remediation: This sector grew by 36.23% in nominal terms and 6.95% in real terms year-on-year. Its GDP contribution was 0.24%.
Construction: The sector saw a nominal growth decline to -0.29% year-on-year, with a real contraction of -2.14%. Its GDP contribution was 4.01%.
Trade: The sector’s nominal growth was 9.67% year-on-year, with a real growth of 1.23%. It contributed 15.70% to the GDP.
Accommodation and Food Services: Nominal growth stood at 1.78% year-on-year, with real growth at 2.80%. Its GDP contribution was 1.05%.
Transportation and Storage: The sector grew by 11.75% in nominal terms and 3.33% in real terms year-on-year. Its GDP contribution was 1.18%.
Information and Communication: The sector saw a nominal growth of 13.94% year-on-year and a real growth of 5.43%, contributing 17.89% to GDP.
Arts, Entertainment and Recreation: This sector grew by 29.08% in nominal terms and 4.44% in real terms year-on-year. Its GDP contribution was 0.31%.
Real Estate Services: Nominal growth was 126.71%, with real growth at 0.84%. The sector’s contribution to GDP was 5.20%.
Finance and Insurance: The sector grew by 42.18% in nominal terms and 31.24% in real terms year-on-year. It contributed 6.81% to GDP.
Professional, Scientific and Technical Services: Nominal growth was 9.43%, with real growth at 1.01%. Its GDP contribution was 3.19%.
Administrative and Support Services: Nominal growth was 6.69%, with real contraction at -1.53%. Its GDP contribution was 0.02%.
Public Administration: The sector grew by 10.61% in nominal terms year-on-year.
The NBS report notes that overall, Nigeria’s Q1 2024 economic performance reflects modest growth driven by the services sector, with varied contributions from other sectors, indicating a complex and evolving economic landscape.
