Crop production, trade telecommunication and information services, crude petroleum and natural gas, and financial institutions were the top sectors that contributed to Nigeria’s economic growth in the first quarter of 2024, according to the latest Gross Domestic Product report.
The report, published by the National Bureau of Statistics on Friday, shows that crop production contributed 19.24 percent, followed by trade with 15.70 percent. Telecommunication and information services had 14.58 percent; crude petroleum, 6.38 percent; and natural gas and financial institutions, 6.35 percent.
Real estate; food, beverage and tobacco; construction; professional, scientific and technical services; and other services contributed 5.20 percent, 5.11 percent, 4.01 percent, 3.19 percent, and 2.51 percent respectively
The NBS report also revealed that GDP growth in Africa’s most populous nation rose to 2.98 percent in real terms in Q1, higher than 2.31 percent in the same period of 2023 but lower than the Q4 last year’s growth of 3.46 percent.
The performance of the GDP in Q1 was driven mainly by the services sector, which recorded a growth of 4.32 percent and contributed 58.04 percent to the aggregate GDP. The agriculture sector grew by 0.18 percent from the growth of -0.90 percent recorded in Q1 2023,” the report said.
It said the growth of the industry sector was 2.19 percent, an improvement from 0.31 percent recorded in Q1 last year. “In terms of share of the GDP, the services sector contributed more to the aggregate GDP in Q1 compared to the corresponding quarter of 2023.”
Analysts at Afrinvest Limited noted that the Q1 growth performance was supported in part by the sustained recovery in the oil economy which grew 5.7 percent as against a 4.2 percent contraction in Q1 2023.
“This reflects the modest improvement in average crude oil production to 1.57mbpd as against 1.51mbpd in the corresponding period of 2023. On the other hand, the non-oil economy grew 2.80 percent compared to 2.77 percent in Q1 2023, nonetheless underperformed Q4 growth of 3.07 percent,” they said in a recent note.
It added that the share of the oil economy rose to 6.38 percent from 6.21 percent in Q12023, while the share of the non-oil economy compressed mildly by 16 basis percentage points year-on-year to 93.62 percent.
Here are more details on the sectors
Crop production
Crop production recorded a growth rate of 1.71 percent in the first quarter of 2024 from 1.93 percent in the first quarter of 2023.
Crop production’s contribution to the real GDP stood at 19.24 percent in the first quarter of 2024.
Trade
The sector’s growth rate stood at 1.23 percent in the first quarter of 2024 from 1.31 percent in the first quarter of 2023.
Trade contribution to the real GDP stood at 15.7 percent in the first quarter of 2024.
Telecommunication and information
The sector’s growth rate stood at 6.23 percent in the first quarter of 2024 from 11.71 percent in the same quarter of 2023.
Telecommunication and information contribution to the real GDP stood at 14.58 percent in the first quarter of 2024.
Crude petroleum and natural gas
The activity’s growth rate stood at 5.7 percent in the first quarter of 2024 from -4.21 percent in the first quarter of 2023.
Crude Petroleum and Natural gas contribution to the real GDP stood at 6.38 percent in the first quarter of 2024.
Financial institutions
The sector’s growth rate stood at 33.3 percent in the first quarter of 2024 from 24.96 percent in the first quarter of 2023.
Financial Institution’s contribution to the real GDP stood at 6.35 percent in the first quarter of 2024.
