Oil Sector Fuels Nigeria’s 3.46% GDP Growth in Q3 2024

Nigeria’s economy grew by 3.46% year-on-year in the third quarter of 2024, driven by significant gains in the oil sector and continued expansion in non-oil activities such as services and agriculture.

This was revealed in a Gross Domestic Product (GDP) report released by the National Bureau of Statistics (NBS) on Monday. The data shows a marked improvement compared to the 2.54% growth recorded in Q3 2023 and a slight uptick from the 3.19% growth posted in Q2 2024.

According to the report, the recovery of the oil sector was a major driver of the economic growth. Average daily crude oil production increased to 1.47 million barrels per day (mbpd), higher than the 1.41 mbpd recorded in Q2 2024 and 1.45 mbpd in the same quarter last year.

Real growth in the oil sector stood at 5.17%, a sharp rebound from the -0.85% contraction seen in Q3 2023. The sector contributed 5.57% to the overall GDP, reaffirming its enduring importance despite efforts to diversify the economy.

The NBS stated, “The performance of the GDP in the third quarter of 2024 was mainly driven by the Services sector, which recorded a growth of 5.19% and contributed 53.58% to the aggregate GDP.”

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The non-oil sector, which accounted for 94.43% of the GDP, also posted a year-on-year growth rate of 3.37%. This represents a steady improvement from 2.75% in Q3 2023 and 2.80% in Q2 2024. Telecommunications, financial services, and agriculture were the standout performers in this sector.

Meanwhile, the agriculture sector reported modest real growth of 1.14%, slightly below the 1.30% recorded in Q3 2023. Crop production remained the dominant contributor within the sector, emphasizing its role in food security and rural employment.

The industrial sector also saw a significant recovery, growing by 2.18% compared to 0.46% in Q3 2023. Gains in the mining and quarrying sub-sector, especially crude petroleum and natural gas, supported this growth, along with moderate improvements in manufacturing and construction.

In nominal terms, Nigeria’s GDP for Q3 2024 was valued at N71.13 trillion, reflecting a year-on-year increase of 17.26% from N60.66 trillion in the same quarter of 2023.