Nigeria’s economy expands 3.84% in Q4 2024
Nigeria’s domestic economy recorded robust growth in the fourth quarter of 2024 (Q4 2024), expanding by 3.84 per cent year-on-year to reach N22.61 trillion, according to the latest data from the National Bureau of Statistics (NBS).
This expansion was primarily fueled by the strong performance of the non-oil sector, particularly the financial and insurance subsector.
The Central Bank of Nigeria (CBN) attributed the growth to increased financial technology adoption, improved banking penetration, and higher capital market investment inflows.
The non-oil sector grew by 3.96 per cent compared to 3.37 per cent in the third quarter of 2024, contributing 3.77 percentage points to overall economic growth, while the oil sector saw a slower growth rate of 1.48 per cent year-on-year.
Financial analyst, Dr. Tunde Olatunji, highlighted that the continued expansion of digital banking and fintech solutions has significantly boosted financial activities.
“Nigeria’s financial services industry is experiencing a transformation, with more people adopting digital banking and mobile transactions. This has spurred investment inflows into the sector, creating more opportunities for economic expansion,” he noted.
Similarly, economic strategist, Mrs. Amina Bello, pointed to the impact of infrastructural development in logistics and trade.
“The transportation and storage sector has benefited from ongoing government investments in road and rail infrastructure, facilitating smoother trade operations and boosting productivity,” she explained.
The information and communication sector also played a crucial role in the economy’s positive trajectory, thanks to increased internet penetration and expanding digital services.
Meanwhile, crop production remained strong due to favorable weather conditions and government-backed agricultural interventions.
Despite the positive growth, challenges persist in the electricity, gas, steam, and air conditioning subsector, which declined by 5.05 per cent in the fourth quarter of 2024.
Analysts attribute this downturn to rising tariffs, ongoing grid maintenance, and a shift towards alternative energy sources.
Energy economist, Engr. Daniel Obiora, emphasized the need for strategic investments in Nigeria’s power infrastructure.
“Addressing power generation deficits is crucial for sustaining long-term economic growth. The government must focus on policies that enhance electricity supply reliability and reduce dependence on costly alternatives,” he stated.
Looking ahead, the CBN projects that Nigeria’s economic growth momentum will continue in 2025, supported by policy interventions, improved investor confidence, and exchange rate stability.
However, external risks such as global crude oil price volatility and inflationary pressures could pose challenges.
Overall, the latest GDP figures signal resilience in Nigeria’s economic landscape, with strong prospects for sustained growth in key sectors in the coming year.
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