Nigeria records GDP growth of 2.98% in Q1

Omeiza Bilal

Nigeria’s Gross Domestic Product (GDP) grew by 2.98% (year-on-year) in real terms in the first quarter of 2024. This growth rate is higher than the 2.31% recorded in the first quarter of 2023 and lower than the fourth quarter of 2023 growth of 3.46%.

According to the National Bureau of Statistics (NBS) in its GDP report, the performance of the GDP in the first quarter of 2024 was driven mainly by the Services sector, which recorded a growth of 4.32% and contributed 58.04% to the aggregate GDP.

“The agriculture sector grew by 0.18%, from the growth of -0.90% recorded in the first quarter of 2023.

“The growth of the industry sector was 2.19%, an improvement from 0.31% recorded in the first quarter of 2023. In terms of share of the GDP, the services sector contributed more to the aggregate GDP in the first quarter of 2024 compared to the corresponding quarter of 2023. In the quarter under review, aggregate GDP stood at N58,855,142.27 million in nominal terms.

“This performance is higher when compared to the first quarter of 2023 which recorded aggregate GDP of N51,242,151.21 million, indicating a year-on-year nominal growth of 14.86%. For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors,” the NBS said in the report.

In the oil sector, thenation in the first quarter of 2024 recorded an average daily oil production of 1.57 million barrels per day (mbpd), higher than the daily average production of 1.51mbpd recorded in the same quarter of 2023 by 0.06mbpd and higher than the fourth quarter of 2023 production volume of 1.55 mbpd by 0.02mbpd.

The bureau stated that the real growth of the oil sector was 5.70% (year-on-year) in Q1 2024, indicating an increase of 9.91% points relative to the rate recorded in the corresponding quarter of 2023 (-4.21%). Growth decreased by 6.41% points when compared to Q4 2023 which was 12.11%. On a quarter-on-quarter basis, the oil sector recorded a growth rate of 13.77% in Q1 2024.

The report stated, “The sector contributed 6.38% to the total real GDP in Q1 2024, up from the figure recorded in the corresponding period of 2023 and up from the preceding quarter, where it contributed 6.21% and 4.70% respectively.

“The non-oil sector grew by 2.80% in real terms during the reference quarter (Q1 2024). This rate was higher by 0.02% points compared to the rate recorded in the same quarter of 2023 and 0.28% points lower than the fourth quarter of 2023.

“This sector was driven in the first quarter of 2024 mainly by Financial and Insurance (Financial Institutions); Information and Communication (Telecommunications); Agriculture (Crop production); Trade; and Manufacturing (Food, Beverage, and Tobacco), accounting for positive GDP growth.

“In real terms, the non-oil sector contributed 93.62% to the nation’s GDP in the first quarter of 2024, lower than the share recorded in the first quarter of 2023 which was 93.79% and lower than the fourth quarter of 2023 recorded as 95.30%.”