Nigeria’s trade sector falls for third consecutive year

Nigeria’s trade sector has slumped to its lowest in three years, as economic pressures weighed on activity, new data has shown.

According to the National Bureau of Statistics (NBS) the sector’s year-on-year growth stood at 1.19 percent in the fourth quarter of 2024, down from 1.40 percent during the same period in 2023, and a far cry from the 4.54 percent recorded in 2022, and 5.34 percent in 2021.

The declining trend reveals persistent challenges, including inflationary pressures, naira volatility, and weak consumer spending, which have weighed on trade activities in the past years.

Quarter-on-quarter, however, the sector rebounded, posting a 14.88 percent growth in the fourth quarter of 2024, up from 0.65 percent in the third quarter of 2024, driven by seasonal spending during the festive period.

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While the sector’s Gross Domestic Product (GDP) at current basic prices rose to N36.8 trillion in 2024, up from N27.4 trillion in 2023, real growth continued to decelerate.

The new report shows that trade’s contribution to GDP fell to 15.11 percent in the fourth quarter of 2024, compared to 15.50 percent in fourth quarter of 2023, diminishing its contribution to the economy.

Annually, the reality is ominous as the sector’s yearly contribution to GDP fell from 15.83 percent in 2023 to 15.46 percent in 2024.