Nigeria’s Gross Domestic Product (GDP) recorded a 3.84% growth rate in the fourth quarter of 2024, marking an increase from the 3.46% reported in both the third quarter of 2024 and the fourth quarter of 2023.
The latest figures were released in a GDP report published by the National Bureau of Statistics (NBS) on Tuesday, February 25, 2025, highlighting the continued expansion of the Nigerian economy despite economic challenges such as inflation and currency fluctuations.
According to the NBS, Nigeria’s economic growth in the final quarter of 2024 was primarily driven by the services sector, which expanded by 5.37% and contributed 57.38% to the overall GDP.
The agriculture sector, however, experienced a slower growth rate of 1.76%, down from the 2.10% recorded in Q4 2023. This decline may have been influenced by climate-related challenges, insecurity, and rising production costs.
Meanwhile, the industry sector also saw a slight decline, growing by 2.00%, compared to 3.86% in Q4 2023. The slowdown in industrial growth could be linked to rising energy costs, supply chain disruptions, and foreign exchange instability affecting manufacturers and businesses.
The report also revealed that Nigeria’s annual GDP growth for 2024 stood at 3.40%, a notable increase from the 2.74% recorded in 2023. This reflects a positive economic trajectory despite challenges such as inflationary pressures, fiscal constraints, and foreign exchange volatility.
The increase in GDP growth signals improved economic activity, particularly in the services sector, which has remained a key driver of Nigeria’s economy.
However, the slower growth in agriculture and industry suggests that more efforts are needed to boost productivity, stabilise inflation, and support businesses.
With Nigeria’s inflation rate fluctuating, recently recorded at 24.48%, and ongoing concerns over foreign exchange stability, experts believe that economic reforms, investment in infrastructure, and policy interventions will be critical in sustaining this growth in 2025.
