By Tony Obiechina Abuja
Nigeria’s Gross Domestic Product (GDP) has grew by 3.19% (year-on-year) in real terms in the second quarter of 2024.
This was contained in the latest GDP report of the National Bureau of statistics (NBS) made available to journalists Monday.
The growth rate is higher than the 2.51% recorded in the second quarter of 2023 and higher than the first quarter of 2024 growth of 2.98%.
The performance of the GDP in the second quarter of 2024 was driven mainly by the Services sector, which recorded a growth of 3.79% and contributed 58.76% to the aggregate GDP.
The agriculture sector grew by 1.41%, from the growth of 1.50% recorded in the second quarter of 2023.
The growth of the industry sector was 3.53%, an improvement from -1.94% recorded in the second quarter of 2023. In terms of share of the GDP, the industry and services sectors contributed more to the aggregate GDP in the second quarter of 2024 compared to the corresponding quarter of 2023.
In the quarter under review, aggregate GDP at basic price stood at N60,930,000.58 million in nominal terms.
This performance is higher when compared to the second quarter of 2023 which recorded aggregate GDP of N52,103,927.13 million, indicating a year-on-year nominal growth of 16.94%.
Highlights of Q2 2024 real GDP performance (year on year), NBS latest:
Real GDP growth 3.19% (Q1 2024 2.98%)
Oil sector 10.15% (Q1 2024 5.70%)
Av. Oil production 1.41mbpd (Q1 2024 1.57mbpd)
Non oil sector 2.80% (Q1 2024, 2.80%)
Agriculture 1.41% (Q1 2024 0.18%)
Manufacturing 1.28% (Q1 2024 1.49%)
Trade 0.70% (Q1 2024, 1.23%)
Transport -13.53% (Q1 2024 3.33%)
ICT 4.44% (Q1 2024, 5.43%)
Real Estate 0.75% (Q1 2024, 0.84%)
Finance and Insurance 28.79% (Q1 2024, 31.24%)
Education 1.92% (Q1 2024, 1.62%)
Health 2.41% (Q1 2024, 2.21%)
Top contributing sectors to GDP in Q2, 2024
-Agriculture 22.62 (Q1, 21.07%)
-ICT 19.78% (Q1, 17.89%)
-Trade 16.39% (Q1, 15.70%)
-Manufacturing 8.46% (Q1, 9.98%)
-Finance & Insurance, 6.57% (Q1, 6.81%)
-Crude oil 5.70% (Q1, 6.38%)
-Real Estate, 5.17% (Q1, 5.20%)
Reacting to the report, Capital market expert, Professor, Uche Uwaleke of the Nasarawa State University, Keffi noted
that the aggressive hike in monetary policy rate in February and March 2024 by the CBN took a toll on output in Q2 2024.
According to him, this may explain the decline recorded in major contributors to GDP such as Manufacturing, Trade, ICT and Real Estate.
“The impact of high cost of petroleum products manifested in the huge decline in Transport GDP from 3.33% to -13.53%. Just like in Q1 2024, when growth was driven by the oil sector, growth in Q2 2024 was also driven by the oil sector at 10.15%. READ ALSO:
- Varsity generates N1.6bn in 10 months
- Police Commission approves promotion of 11 CPs, 16 DCPs
- Tinubu appoints 8 new permanent secretaries
- BREAKING: Lookman Wins 2024 CAF Men’s Player Of The Year
- CAF Awards 2024: Nnadozie Scoops Goalkeeper Of The Year
“Oil sector growth was aided largely by the increase in crude oil price during the quarter as average crude oil production fell (from 1.57mbpd in previous quarter to 1.41mbpd)
“The Non-oil sector performance was powered by the Services sector chiefly Financial services and ICT. This sector’s contribution to GDP in Q2 was 2.80%, exactly same as in Q1
“In my view, this identified growth pattern, weighted in favour of the services sector, is not healthy for a developing economy such as ours. Little wonder, economic growth does not appear inclusive reflecting in rising unemployment and poverty levels.
“It is time we reset this faulty economic structure, leveraging technology, in favour of the productive sectors: Industry and Agriculture.
“Indeed, structural change is strongly recommended (by UNCTAD) as one of the ingredients of building productive capacities”.
