Top 10 sectors that drove Nigeria’s economy in Q4

Crop production, trade, telecommunication and information services, and seven other sectors contributed more to Nigeria’s economic growth in the fourth quarter of 2024, according to the latest Gross Domestic Product report.

The report, published by the National Bureau of Statistics, shows that crop production contributed 23.42 percent, followed by trade with 15.11 percent. Telecommunication and information services had 15.40 percent; Real estate had 5.88 percent; and Financial Institutions had 5.76 percent.

Crude petroleum and natural gas, food, construction, professional services, and other services contributed 4.60 percent, 4.08 percent, 3.44 percent, 3.21 percent, and 3.08 percent respectively

In the fourth quarter of 2024, Nigeria’s economy experienced its most robust growth in three years, with the Gross Domestic Product (GDP) expanding by 3.84 percent year-on-year.

According to NBS, this surge was driven by the services sector, which recorded a 5.37 percent increase and contributed 57.38 percent to the nation’s aggregate GDP.

Read also: Nigeria’s economic growth to remain stable in 2025, say experts

Analysts at Comercio Partners in a notice said: “Although the nation grappled with the gap between macroeconomic indicators and the lived realities of its citizens, the challenges of soaring inflation, currency depreciation, and high borrowing costs revealed the stark disconnect between statistical growth and the average Nigerian’s quality of life.”

“Amid these developments, Nigeria’s plan to rebase its GDP in 2025, is set to provide a more accurate reflection of economic performance.”

“The last GDP rebasing in 2014 significantly increased the size of the economy by capturing previously underrepresented sectors such as telecommunications, entertainment, and fintech. Another rebasing will likely highlight the growing importance of services while offering better insights into structural shifts,” it said.

According to the GDP report by NBS, here are the highest contributing sectors to the GDP growth in Q4.

Crop production

Crop production maintained its dominance as the largest contributor to Nigeria’s GDP, accounting for a significant share of economic output.

The sector recorded a growth rate of 1.90 percent in Q4 from 2.44 percent in Q4’23, its contribution to the real GDP stood at 23.24 percent a slight contraction from 26.86 percent reported in Q4’23.

Trade

The trade sector showed remarkable performance, contributing 15.11 percent to real GDP. Despite a marginal decline in year-on-year growth from 1.40 percent in Q4 2023 to 1.19 percent in Q4 2024, trade activities remained strong, driven by increased consumer demand and cross-border commerce.

Read also: Higher oil output key to Nigeria’s economic growth – Elumelu

Telecommunication and information

The sector’s growth rate stood at 6.81 percent from 6.78 percent, Telecommunication and information contribution to the real GDP stood at 14.40 percent in Q4 from 13.94 percent in Q3.

Real estate

Real estate services posted a 0.86 percet growth rate in Q4 2024, slightly lower than 1.33 percent in Q4 2023. The sector contributed 5.88 percent to GDP, driven by urban expansion and increased investment in commercial properties.

Financial institution

The sector’s growth rate stood at 28.47 percent from 31.92 percent, and the financial institution contribution to the real GDP stood at 5.76 percent, underscoring the growing influence of financial inclusion and digital banking.

Crude petroleum and natural gas

Nigeria’s oil sector saw a marginal growth of 1.48 percent in Q4 2024, down from 12.11 percent in Q4 2023. The sector’s contribution to GDP stood at 4.60 percent, impacted by fluctuating global oil prices and production constraints.

Food, Beverage and Tobacco

Food, beverages and tobacco recorded a growth rate of 2.84 percent from 1.76 percent, its contribution to the real GDP stood at 4.08 percent a slight increase from 4.06 percent reported in Q3.

Construction

The construction sector recorded a 2.95 percent real GDP growth in Q4 2024, slightly below the previous year’s figure. Infrastructure projects and housing developments contributed to its 3.44 percent share of total GDP.

Professional, scientific, and technical services

This sector recorded a steady 1.62 percent growth in Q4 2024, contributing 3.21 percent to GDP. The growth was attributed to increased demand for consultancy, engineering, and IT services.

Other services

The sector’s growth rate stood at 0.99 percent from 0.05 percent, and other services’ contribution to the real GDP stood at 3.80 percent in Q4 from 2.18 percent in Q4’23.