Nigeria's economy experienced significant growth in the fourth quarter of 2024, marking its highest rate in three years, primarily driven by the services sector, according to data released on Tuesday.
The gross domestic product (GDP) increased by 3.84% year-on-year, surpassing the 3.46% growth recorded in the third quarter of 2024, as well as the 3.19% and 2.98% growth rates seen in the second and first quarters, respectively.
The services sector was the main contributor to this growth, achieving a year-on-year increase of 5.37%, as reported by the National Bureau of Statistics. For the entire year, the economy grew by 3.40%, up from 2.74% in 2023.
Despite this progress, the growth rate remains below the 6% target set by President Bola Tinubu upon his assumption of office in mid-2023, in Africa's most populous country.
Nigeria is planning to rebase its GDP data to more accurately reflect the current economic environment, following a similar adjustment for its Consumer Price Index. This rebasing aims to incorporate growth in sectors such as the marine economy, arts, culture and tourism, information and communication technology, and e-commerce, all of which have seen substantial expansion since the last rebasing in 2014.
This adjustment previously allowed Nigeria to surpass South Africa as Africa's largest economy, although it has since regressed due to naira devaluations under Tinubu's administration. In the early months of his tenure, Tinubu initiated bold reforms aimed at unlocking the country's full economic potential. The World Bank noted last year that Nigeria was beginning to see the positive effects of these policy changes.
In the final quarter of 2024, average daily oil production was reported at 1.54 million barrels per day, a slight decrease from 1.56 million barrels per day a year earlier. Agricultural growth was recorded at 1.76%, while industrial output rose by 2.00%. The International Monetary Fund projects that Nigeria's economy will grow by 3.2% this year.