Home News Finance Nigeria’s GDP Slows to 2.98% in Q1 2024 -NBS 
FinanceNews

Nigeria’s GDP Slows to 2.98% in Q1 2024 -NBS 

636

Nigeria’s Gross Domestic Product (GDP) growth rate slowed to 2.98% in the first quarter of 2024, down from 3.46% in the fourth quarter of 2023, according to the National Bureau of Statistics (NBS). This growth rate is, however, higher than the 2.31% recorded in the same period of 2023.

Gross Domestic Product (GDP) measures the total value of all goods and services produced within a country over a specific period. The GDP performance in Q1 2024 was primarily driven by the services sector, which grew by 4.32% and contributed 58.04% to the overall GDP. The agriculture sector saw modest growth of 0.18%, recovering from a decline of -0.90% in the first quarter of 2023. The industry sector experienced an increase of 2.19%, up from 0.31% in the same period last year.

The aggregate GDP for Q1 2024 stood at N58.8 trillion in nominal terms, showing a significant increase from N51.2 trillion in the first quarter of 2023, indicating a year-on-year nominal growth of 14.86%.

In the oil sector, real growth was 5.70% year-on-year, marking a significant increase from the -4.21% recorded in the same quarter of 2023. However, this growth decreased from 12.11% in Q4 2023. On a quarter-on-quarter basis, the oil sector achieved a growth rate of 13.77% in Q1 2024. The oil sector contributed 6.38% to the total real GDP in Q1 2024, up from 6.21% in the corresponding period of 2023 and 4.70% in the preceding quarter.

The non-oil sector grew by 2.80% in real terms during Q1 2024. This growth rate was slightly higher than the same quarter in 2023 but lower than in Q4 2023. Key contributors to the non-oil sector’s growth included Financial and Insurance (Financial Institutions), Information and Communication (Telecommunications), Agriculture (Crop Production), Trade, and Manufacturing (Food, Beverage, and Tobacco). In real terms, the non-oil sector contributed 93.62% to the nation’s GDP in Q1 2024, slightly lower than 93.79% in Q1 2023 and 95.30% in Q4 2023.

The NBS report also noted an average daily oil production of 1.57 million barrels per day (mbpd) in Q1 2024, which is higher than both the Q4 2023 production volume of 1.55 mbpd and the Q1 2023 production volume of 1.51 mbpd.

Overall, Nigeria’s inconsistent economic policies, high inflation rate and currency depreciation result in reduced consumer purchasing power and increased production costs, leading to slower GDP growth. Earlier in May, the Manufacturers Association of Nigeria warned that insecurity and the nation’s economic policies have shut down 60% of manufacturers in the Northeast region of Nigeria. Across other parts of the country, the same grim situation is obtainable.

Read more: BBNaija Winner Phyna Distraught Over Unpaid ₦100m Prize

About The Author

Related Articles

Kenya’s Ruto Proposes Mediating Nile Dam Dispute, Seeks to Purchase Ethiopia’s Power
News

Kenya’s Ruto Proposes Mediating Nile Dam Dispute, Seeks to Purchase Ethiopia’s Power

Kenya’s William Ruto has proposed to mediate the Nile Dam dispute between...

Nigerian Influencer Shares 4-Month-Old News, Subtly Implying Nigeria Is IMF-Debt-Free as Tinubu's Borrowing Spree Shifts to World Bank
News

Nigerian Government Pushes “IMF-Debt-Free” Media Narrative As Nigeria Becomes Africa’s Largest World Bank Debtor

A Nigerian social media influencer has resurfaced a four-month-old news report from...

NewsTravel

Burkina Faso and Italy Sign Visa Exemption Agreement for Holders of Official Passports

Burkina Faso and Italy have taken a significant step toward strengthening bilateral...

NewsSecurity

EFF Raises Concerns Over Gun Violence in U.S. Ahead of 2026 FIFA World Cup

The Economic Freedom Fighters (EFF) has voiced deep concern over the escalating...