Services and Oil Drive Nigeria’s Economic Growth to 3.46% in Q3 2024
Nigeria’s economy grew by 3.46% year-on-year in the third quarter of 2024, outperforming the 2.54% growth recorded in the same period last year, according to the National Bureau of Statistics. This marks a slight improvement from 3.19% in Q2 2024, driven primarily by the services sector, which grew by 5.19% and contributed 53.58% to the GDP. Telecommunications, financial institutions, and transportation led this surge, reflecting increased digitalization and rising demand for connectivity. The oil sector also rebounded, with a 5.17% growth and an average daily daily production of 1.47 million barrels, contributing 5.57% to the GDP.
Despite these gains, experts highlighted concerns over the lack of inclusivity and balance in the growth. Economists pointed out that while services thrived, key productive sectors like agriculture and manufacturing recorded limited growth, with agriculture increasing by just 1.14%. They argued that such a growth pattern does little to address widespread unemployment, rising inflation of 33.88%, and stagnant real income. Structural economic reforms, focusing on bolstering industry and agriculture, were recommended to ensure more sustainable and inclusive development.
Critics, including academics and financial experts, warned that the current growth trajectory might not translate into tangible benefits for most Nigerians. They noted that inflationary pressures and the reliance on services over productive sectors could widen socio-economic inequalities. Calls were made for diversification efforts to prioritize industrial and agricultural development, leveraging technology and structural change to create a more balanced and resilient economy.
