Service sector raises GDP by 3.46% in Q3

 Nigeria’s Gross Domestic Product (GDP) growth rate in real terms (Constant price) grew by 3.46% in the third quarter (Q3) of 2024 on a year-on-year basis, the National Bureau of Statistics (NBS) has stated. A statement by the Statistician General of the Federation, Prince Adeyemi Adeniran said the growth is 0.92 percentage points higher than […]

 Nigeria’s Gross Domestic Product (GDP) growth rate in real terms (Constant price) grew by 3.46% in the third quarter (Q3) of 2024 on a year-on-year basis, the National Bureau of Statistics (NBS) has stated.

A statement by the Statistician General of the Federation, Prince Adeyemi Adeniran said the growth is 0.92 percentage points higher than the rate recorded in Q3 2023 (2.54%).

The statement added that the Quarter was higher by 0.27 percentage points relative to the 3.19% recorded in the second quarter (Q2) of 2024. “This reflects a higher growth rate when compared to the corresponding quarter (Q3 2023) and the preceding quarter (Q2 2024). The major driver of the economy is the Services sector, which recorded a growth of 5.19% and contributed 53.58% to the aggregate GDP. The economic activity in real terms for Q3 2024 stood at N20.1tr, which is higher than the rates recorded in the preceding Q2 2024 which stood at N18.2tr, and the corresponding quarter Q3 2023 which recorded N19.4tr.”

He stated that in nominal terms (current price), aggregate GDP stood at N71.1tr in Q3 2024, indicating a year-on-year nominal growth rate of 17.26% compared to the value of NN60.tr recorded in Q3 2023.

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“Similarly, the quarter under review is higher than the value of N60.9tr recorded in the preceding quarter (Q2 2024).

“The major contributing economic activities in real terms in the quarter under review (i.e., Q3 2024) are Crop Production 26.51%, Trade 14.78%, Telecommunication 13.94%, Crude petroleum 5.57% and Real Estate 5.43%. On a broad classification of the economic activities into Agriculture, Industry, and Services sectors based on growth. The Agricultural Sector grew by 1.14% in Q3 2024 in real terms, which is less than Q3 2023 which recorded 1.30%. The industry grew by 2.18% in Q3 2024, which shows improvement compared to the figure recorded in Q3 2023 (0.46%). While the Services sector grew by 5.19% higher than 3.99% recorded in Q3 2023.

Analyses of the contributions of the broad economic sectors in the period under review. Agriculture contributed 28.65%, Industry 17.77%, and Services 53.58%. Agriculture and industry contributions were less than their contributions in Q3 2023 by 0.66% and 0.22%, while the Services sector had the highest contribution to the GDP in Q3 2024, surpassing the Service sector’s contribution in the corresponding quarter of 2023 by 0.88% percentage points.

“Further disaggregation of the economic activities into oil and non-oil sectors.  The oil GDP grew by 5.17% in Q3 2024, which shows improvement compared to Q3 2023 (-0.85%), but less than the previous quarter of Q2 2024, which recorded 10.15%. Similarly, the oil sector accounted for 5.57% of the total GDP during the quarter under review.

“The third quarter of 2024 recorded an average daily oil production of 1.47 million barrels per day (mbpd), higher than the daily average production of 1.45 mbpd recorded in the same quarter of 2023 by 0.02 mbpd and higher than the second quarter of 2024 production volume of 1.41 mbpd by 0.07 mbpd.

“In real terms, the non-oil sector contributes 94.43% to the GDP in Q3 of 2024. This shows a decrease on a year-on-year basis compared to the same period in 2023, which stood at 94.52% but higher than Q2 2024, which recorded 94.30%.”

 He said the economic performance of the non-oil sector in Q3 2024 is attributed to the growth recorded in some economic activities, like crop production in the Agriculture sector, Trade, Telecommunication, and Real Estate in the Services Sector.

Impact of service sector not healthy for Nigeria – Uwaleke

Commenting on the report, a professor of capital market, Prof. Uche Uwaleke said the growth, which is propelled by the service sector is not healthy but efforts should be made to increase the manufacturing sector that has been battered with high interest rate and inflation.

He noted that the economic growth does not appear inclusive, reflecting rising unemployment and poverty levels.

“It is time we reset this faulty economic structure, leveraging technology, in favour of the productive sectors; industry and agriculture. Indeed, structural change is strongly recommended (by UNCTAD) as one of the ingredients of building productive capacities.

Tinubu assures of greater economic output

President Bola Ahmed Tinubu has assured Nigerians of better economic output as the economy continues to expand following the third quarter Gross Domestic Product report by the National Bureau of Statistics. 

Sunday Dare, Special Adviser to the President on Media and Public Communications in a statement said the growth in GDP shows that President Tinubu’s quest for a more robust boost in the economy and, by extension, a better standard of living for all Nigerians is on course.

He said, “The 3.46% growth indicates Nigeria is recovering from the reforms’ unintended effects.

The statement further assured that once the economy is rebased by early 2025 to capture its dynamism and record significant changes that have occurred in different sectors, the country will be on its way to shared prosperity.