Official data released on Friday revealed a robust growth trajectory for the Nigerian economy in the first quarter of 2024, outpacing the same period last year.
According to the National Bureau of Statistics (NBS), Nigeria, Africa’s largest economy, experienced a significant uptick, with a 2.98 percent year-on-year increase in its Gross Domestic Product (GDP) in real terms during Q1. This growth rate surpassed the 2.31 percent recorded in the corresponding period of 2023 but fell short of the 3.46 percent growth seen in the final quarter of 2023.
The NBS report highlighted that the Services sector emerged as the primary driver of GDP performance in Q1 2024, exhibiting a robust growth of 4.32 percent and contributing 58.04 percent to the overall GDP. Additionally, the agriculture sector showed signs of recovery, expanding by 0.18 percent compared to a decline of -0.90 percent in Q1 2023.
The industry sector also demonstrated notable improvement, posting a growth of 2.19 percent, a significant increase from the 0.31 percent recorded in the first quarter of the previous year. In terms of GDP composition, the services sector’s contribution to the total GDP in Q1 2024 surpassed its share in the same period of 2023.
Market analysts had earlier projected an accelerated economic growth compared to the previous year, citing the expansion in the monthly Purchasing Managers’ Index (PMI) as a contributing factor.
Bolade Agboola, an energy and consumer growth analyst at ChapelHill Denham, commented, “If we look at the PMI, there’s an improvement compared to Q1 2023. Unlike last year’s Q1, which faced a cash crunch, economic activities in Q1 2024 were smoother. Consequently, we anticipate growth in the non-oil sector.”
Agboola also noted a slight improvement in oil production from Q1 last year, expecting it to have a positive impact on economic output in Q1 2024.
