Nigeria’s economy up 2.54% on services sector growth

Nigeria’s economy grew marginally in the third quarter of this year largely on the back of the services sector, official data released on Friday show.

Africa’s biggest economy saw its Gross Domestic Product (GDP) grow by 2.54 percent (year-on-year) in real terms in Q3 2023, compared to 2.51 percent in Q2 and 2.25 percent in the same period last year, according to the National Bureau of Statistics (NBS).
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“The performance of the GDP in Q3 was driven mainly by the services sector, which recorded a growth of 3.99 percent and contributed 52.70 percent to the aggregate GDP,” the report said.

It said the agriculture sector grew by 1.30 percent, from the growth of 1.34 percent recorded in the third quarter of 2022 and that the growth of the industry sector was 0.46 percent, an improvement from -8.00 percent recorded in Q3 of 2022.
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“In terms of share of the GDP, agriculture, and the industry sectors contributed less to the aggregate GDP in Q3 compared to the third quarter of 2022.”

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Economists widely hol that service-led growth may be termed as a sign of a mature economy, indicating that the country is shifting from a reliance on manufacturing and agriculture to a focus on providing intangible goods and services. This shift can be driven by a number of factors, including rising incomes, urbanisation, and technological advancements.