Nigeria’s economy continues to evolve, revealing both familiar patterns and surprising shifts. In the third quarter of 2024, the country achieved a gross domestic product (GDP) growth rate of 3.46%, outpacing the 2.54% recorded in Q3 2023 and the 3.19% from the previous quarter. Behind these numbers lies the story of the services sector driving the economy forward, agriculture navigating slower growth, and industries finding their footing.
Agriculture’s contribution to Q3 GDP
The services sector continued to be the dominant force in the economy, recording an impressive growth of 5.19% and contributing a substantial 53.58% to the aggregate GDP. Its consistent performance underscores its centrality to Nigeria’s economic resilience.
In contrast, the agriculture sector posted a modest growth of 1.14%, a slight dip from the 1.30% recorded in Q3 2023. This signals persistent challenges within the sector, despite its critical role in ensuring food security and providing livelihoods for a significant portion of the population.
Meanwhile, the industry sector showed signs of recovery, with a growth of 2.18%, a marked improvement from the 0.46% recorded in Q3 2023.
A closer look at agriculture
Agriculture contributed 25.01% to nominal GDP in Q3 2024. However, this is a slight decline compared to the 26.36% in Q3 2023. Encouragingly, it marks an increase from the 18.54% contribution seen in Q2 2024.
Within agriculture, crop production continues to be the major driver, accounting for an overwhelming 92.28% of the sector’s nominal value. Year-on-year, the sector grew by 11.29% in nominal terms, a slight improvement of 0.23% points from Q3 2023. Quarter-on-quarter, agriculture’s growth stood at a remarkable 57.53%, reflecting seasonal dynamics and harvest periods.
Nominal GDP trends
Nigeria’s aggregate GDP at basic prices for Q3 2024 stood at ₦71.13 trillion, representing a year-on-year nominal growth of 17.26%. This marks a significant increase from the ₦60.66 trillion recorded in Q3 2023. This nominal growth highlights the impact of inflation and price changes on economic activities.
What this means for Nigeria’s economy
The third quarter’s GDP figures showcase the interplay of growth and challenges across Nigeria’s sectors. While the services sector continues to flourish, the agriculture sector’s slowed growth raises questions about productivity and investment in the sector. The gradual recovery of the industry sector provides hope for diversification, but the journey remains long.
The path ahead
Nigeria’s economic growth in Q3 2024 presents an opportunity to reflect on priorities. Sustained investments in agriculture, robust policy support for industries, and continued innovation in services will be key to driving inclusive and sustainable growth.
As we move into the final quarter of the year, the focus must remain on addressing structural challenges, harnessing sectoral strengths, and ensuring that growth translates into tangible benefits for Nigerians.
