The economy showed positive signs of growth in the second quarter of 2024, according to a new report from the National Bureau of Statistics (NBS). The country’s Gross Domestic Product (GDP) increased by 3.19% in real terms compared to the same period last year, marking a notable improvement from previous quarters.
The NBS released its Q2 2024 GDP report on Monday, highlighting that this growth is an improvement over the 2.51% recorded in the second quarter of 2023 and the 2.98% growth observed in the first quarter of 2024.
The report points out that the primary driver of this GDP growth was the services sector. This sector experienced a robust growth rate of 3.79% and contributed significantly to the overall GDP, making up 58.76% of the total economic output. This contribution underscores the increasing role of services in Nigeria’s economy, reflecting a shift towards more service-oriented activities.
“The services sector has been the backbone of our economic performance this quarter,” said an NBS spokesperson. “Its strong growth has played a crucial role in driving the overall increase in GDP.”
While the services sector thrived, other sectors showed mixed results. The agriculture sector, which is a significant part of Nigeria’s economy, grew by 1.41%. This is a slight decrease from the 1.50% growth seen in the same quarter last year. This slower growth in agriculture might be attributed to various factors including climate conditions and market fluctuations.
On the other hand, the industrial sector showed notable improvement. It grew by 3.53% in Q2 2024, a significant turnaround from the -1.94% decline recorded in the second quarter of 2023. This rebound indicates a recovery in industrial activities, which could be linked to increased production and industrial investments.
In nominal terms, Nigeria’s GDP stood at N60,930,000.58 million for the second quarter of 2024. This is a substantial increase from the N52,103,927.13 million recorded in the same period last year, representing a year-on-year nominal growth of 16.94%.
“This nominal growth reflects the overall expansion of the economy and suggests improved economic conditions compared to the previous year,” the NBS report noted.
The growth in GDP is a positive indicator for Nigeria’s economy, especially considering the global economic challenges and domestic issues. It reflects the country’s ongoing economic recovery and the potential for continued expansion in various sectors.
However, the mixed performance of other sectors like agriculture highlights areas where further attention is needed. Policies aimed at boosting agricultural productivity and addressing sector-specific challenges could help sustain overall economic growth.
