Nigeria’s economy showed positive momentum in the second quarter of 2024, with Gross Domestic Product (GDP) growth reaching 3.19% year-on-year in real terms. This marks an improvement from the 2.51% growth recorded in Q2 2023, and surpasses the 2.98% growth in the first quarter of 2024.
According to the National Bureau of Statistics (NBS), the services sector was the main driver of this growth, contributing 58.76% to the overall GDP and expanding by 3.79%. The industry sector also saw a strong recovery, growing by 3.53%, a significant rebound from the -1.94% contraction in Q2 2023.
The agricultural sector, on the other hand, recorded a more modest growth in Q2 2024, expanding by 1.41% year-on-year. This represents a slight decline of 0.09 percentage points compared to Q2 2023, but a notable improvement from the 0.18% growth in the previous quarter. The sector grew by 7.35% on a quarter-on-quarter basis, showing resilience despite ongoing challenges. Agriculture contributed 22.61% to the total GDP, slightly lower than its 23.01% contribution in Q2 2023, but higher than the 21.07% recorded in Q1 2024.
Agriculture remains a key pillar of Nigeria’s economic structure with its vast employment base and vital role in food security. Its influence on the broader economy is undeniable, and the trends in this sector often reflect the challenges and opportunities the country faces.
Crop production continues to be the driving force behind the agricultural sector, contributing a significant 87.48% to agricultural GDP in Q2 2024. This underscores its central role, not only within agriculture but also in the wider economy. Crop production was the top contributor to real GDP growth across all economic activities, accounting for 20.35% of the overall GDP growth in the quarter. This dominance highlights the importance of continued investment in crop production to maintain and enhance its contribution to economic growth.
Despite crop production’s prominence, other sub-activities within agriculture present substantial room for growth. Livestock, which contributed 6.54% to agricultural GDP, Fishing (4.97%), and Forestry (1.01%), offer significant potential to further boost the sector’s overall performance. Their growth would diversify agricultural output and enhance food security and create more employment opportunities.
Favourable weather conditions in some regions supported higher crop yields, while government policies promoting mechanisation and improved access to credit have boosted the sector. However, persistent challenges, such as rising input costs, inadequate infrastructure, and erratic rainfall, constrain the sector’s overall potential—especially in the lesser-developed sub sectors like livestock, fishing, and forestry, which could contribute more with targeted investments and support.
Nigeria’s GDP growth in Q2 2024 reflects an economy slowly gaining momentum, with agriculture playing a key, yet underleveraged, role. Crop production’s substantial contribution to the GDP growth underscores the sector’s importance. However, the future trajectory of Nigeria’s economic expansion depends on a more balanced development within agriculture. Tapping into the growth potential of sub-sectors like livestock, forestry, and fishing could enhance the sector’s resilience and contribute to the country’s overall economic performance. With strategic investments and reforms aimed at addressing current bottlenecks, the agricultural sector can drive even stronger GDP growth in the coming quarters.
