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.
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