The economic reforms being initiated by the Federal Government have proven to be positive following the Q4, 2024 Gross Domestic Product (GDP) growth report put at 3.84 per cent.
The increase, which is 0.38 per cent higher that the previous quarter of 2023 at 3.46 per cent, has shown that the economy recorded the fastest growth in three years.
The growth underscores the resilience of the Nigerian economy despite global uncertainties just as it also reflects continued recovery and expansion in key sectors.
According to the National Bureau of Statistics (NBS) in a report released yesterday, rapid expansion of activities in the Services sector by 5.37 per cent buoyed aggregate GDP by 57.38 per cent In real term, GDP grew by 0.38 per cent to 3.84 per cent (year-on-year) in the fourth quarter of 2024, higher than the 3.46 per cent recorded in the fourth quarter of 2023 and the third quarter of 2024 growth rate (approximately 3.46%).
Similarly, it was higher by 0.38 per cent basic points relative to a similar growth rate of 3.46 per cent recorded in the third quarter (Q3) of 2024.
This reflected a higher economic improvement when compared to the preceding quarter (Q3’24), with the service sector still playing the role of the major driver of the economy, which recorded a growth of 5.37 per cent and contributed 57.38 per cent to the aggregate GDP.
According to the report, on a quarter-on-quarter basis, the real GDP grew by 10.99 per cent in Q4’24, reflecting a higher production level than in Q3’24.
The estimated economic activity in real terms for Q4’24 stood at ₦22.610 million, which is higher than the rates recorded in Q3’24 and Q4’23, which stood at ₦20.115 million and ₦21.773 million. “This also highlighted the improvement in the quarter under review compared to the previous quarters of Q3’24 and Q4’24.
“The year 2024 ended with an overall annual GDP growth rate of 3.40 per cent, from the 2.74 per cent reported in 2023. “Thus, there was a decline in the performance of Agriculture and Industry in 2024 relative to 2023, while the performance of the Services sector improved in 2024”, NBS disclosed.
In nominal terms (current price), aggregate GDP stood at ₦78.374 million in Q4 of 2024, indicating a year-on-year nominal growth rate of 18.91 per cent. This is higher than the value of ₦65.908 million in Q4’23 and ₦71.131 million in the preceding quarter.
According to NBS, major contributing economic activities in real terms in the quarter under review are crop production, 23.42 per cent, trade, 15.11 per cent, telecommunication, 14.40 per cent, real estate, 5.88 per cent, financial institutions, 5.76 per cent, and crude petroleum 4.60 per cent.
