Emmanuel OchayiNigeria’s GDP growth rate improved in the fourth quarter of 2024, reaching 3.84% compared to 3.46% in the previous quarter. However, not all sectors contributed significantly to this growth. According to the National Bureau of Statistics, some industries recorded minimal expansion, reflecting challenges within these sectors.
Prime Business Africa presents the 10 sectors in Nigeria with the lowest GDP growth rate at current prices.
Join our WhatsApp Channel1. Pulp, Paper and Paper Products – 0.13%
This sector recorded the lowest GDP growth rate in Q4 2024. The slow growth suggests reduced demand for locally produced paper and pulp products. Rising production costs and increased imports may have contributed to this weak performance.
2. Textile, Apparel and Footwear – 0.95%
Nigeria’s textile industry has struggled with declining investments and high production costs. The reliance on imported raw materials and smuggled foreign textiles has hindered local production, leading to low growth in this sector.
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3. Fishing – 1.26%
The fishing industry’s slow growth may be linked to climate change, pollution, and overfishing. Additionally, insecurity in coastal areas and weak infrastructure have made it difficult for fish farmers and fishermen to operate effectively.
4. Livestock – 1.42%
Despite the high demand for livestock products, this sector saw limited growth. Factors such as disease outbreaks, poor veterinary services, and farmer-herder conflicts continue to limit expansion. The high cost of animal feed has also affected productivity.
5. Non-Metallic Products – 2.27%
This sector, which includes cement, ceramics, and glass production, recorded weak growth. Rising energy costs and reduced construction activities may have contributed to the sluggish performance.
6. Electricity, Gas, Steam and Air Conditioning Supply – 2.29%
Nigeria’s power sector remains a major challenge. Inconsistent electricity supply, poor infrastructure, and financial constraints have slowed growth. Consumers continue to rely on alternative power sources, limiting expansion in this sector.
7. Electrical and Electronics – 2.55%
The electrical and electronics sector recorded low GDP growth, likely due to high import dependence and limited local manufacturing. The lack of government incentives for local production has further affected growth.
8. Food, Beverage and Tobacco – 2.63%
Despite being one of Nigeria’s largest industries, this sector recorded slow growth. Inflation, high production costs, and supply chain disruptions have made it difficult for manufacturers to expand output.
9. Plastic and Rubber Products – 2.78%
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The plastic and rubber industry experienced weak growth due to rising costs of raw materials and environmental concerns. Restrictions on plastic use and increased advocacy for eco-friendly alternatives may have affected the sector’s performance.
10. Wood and Wood Products – 2.85%
Deforestation, illegal logging, and high production costs have slowed growth in this sector. The demand for wood products remains strong, but supply chain challenges and government regulations have impacted expansion.
While Nigeria’s GDP growth rate improved in Q4 2024, these 10 sectors recorded slow growth due to various economic and structural challenges. Addressing issues such as high production costs, weak infrastructure, and policy limitations could help improve their contributions to the country’s economy.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
