*As oil production drops to 1.41mbpd
WorldStage Newsonline– Nigeria’s Gross Domestic Product (GDP) grew 3.19 per cent in the second quarter of 2024, up from 2.51 per cent in the second quarter of 2023 and 2.98 per cent growth seen in the first quarter of this year.
The National Bureau of Statistics’ (NBS) GDP report released on Monday indicated that Q2 GDP performance was driven by the Services sector which grew by 3.79 per cent and contributed about 58.76 per cent to the total GDP.
“In real terms, the non-oil sector contributed 94.30% to the nation’s GDP in the second quarter of 2024, lower than the share recorded in the second quarter of 2023 which was 94.66% and higher than the first quarter of 2024 recorded as 93.62%,” the report said.
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 service sector contributed more to the aggregate GDP in the second quarter of 2024 compared ti the corresponding quarter of 2023.
The underlying factors for this stagnation could include structural challenges, limited diversification, and persistent economic uncertainties, all of which may hinder the sector’s potential to drive more robust and sustained economic growth.
Nigeria’s non-oil sector has exhibited signs of stagnation despite Nigeria’s overall growth in Gross Domestic Product (GDP) in the second quarter of 2024.
The non-oil sector recorded a growth rate of 2.80% in real terms, mirroring the growth rate seen in the first quarter of 2024.
This growth rate is notably lower than the 3.58% recorded in the same quarter of 2023, indicating a slowdown, and raising concerns about the country’s economic diversification efforts.
Growth performance, was driven primarily by Financial and Insurance Services, Telecommunications, Agriculture, Trade, and Manufacturing, suggests a concentration of growth in specific industries. Yet, the broader non-oil sector fails to exhibit dynamic growth.
Also, this stagnation is further highlighted by the non-oil sector’s contribution to GDP, which stood at 94.30% in Q2 2024, down from 94.66% in the same period the previous year.
Highlights of Q2 2024 real GDP performance (year on year) include:
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 include, 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%) and the Real Estate, 5.17% (Q1, 5.20%).
