Nigeria’s GDP Growth Dips By 2.98% For Q1 2024- NBS Reveals

The National Bureau of Statistics (NBS) has reported that Nigeria’s Gross Domestic Product (GDP) grew by 2.98% in the first quarter (Q1) of 2024.

This marks a slight decline from the 3.46% growth recorded in the fourth quarter (Q4) of 2023 but an improvement from the 2.31% growth in Q1 of 2023.

According to the NBS, the performance in Q1 2024 was driven primarily by the Services sector, which experienced a 4.32% growth and contributed 58.04% to the total GDP. In contrast, the Agriculture sector showed modest growth, increasing by 0.18%, up from a contraction of 0.90% in the same period the previous year. The Industry sector grew by 2.19%, a notable rise from the 0.31% growth in Q1 2023.

The report highlights the mixed economic performance across different sectors. “Nigeria’s GDP growth of 2.98% in Q1 2024, while an improvement from the previous year’s first quarter, indicates a slowing trend compared to the fourth quarter of 2023,” the NBS noted.

The Services sector’s robust growth was a significant contributor to the overall GDP. “The Services sector remains a key driver of our economy, with its 4.32% growth indicating strong performance in areas such as information and communication, and finance and insurance,” said an NBS representative.

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The Agriculture sector, although not as strong, showed positive movement. “The slight growth in Agriculture, from -0.90% to 0.18%, is a positive sign of recovery. We are hopeful that ongoing reforms and investments will yield better results in the coming quarters,” the NBS official added.

Industry also saw a positive shift. “The Industry sector’s growth of 2.19% is encouraging, reflecting improvements in manufacturing and mining activities. This sector’s performance is crucial for job creation and economic stability,” stated the NBS.

Economic analysts have mixed reactions to the report. “The Q1 2024 GDP growth rate of 2.98% suggests that while the economy is growing, it is not at the pace we would like. The decline from Q4 2023 is concerning,” said economic analyst Adebayo Johnson.

In response to the report, the government expressed optimism about future growth. “We acknowledge the challenges, but we are confident that our economic policies and reforms will foster stronger growth in subsequent quarters,” a government spokesperson said.

The NBS report also emphasizes the need for continued efforts to diversify the economy and strengthen sectors beyond Services. “To sustain and improve GDP growth, there must be concerted efforts to boost the Agriculture and Industry sectors,” the report concluded.

As Nigeria navigates through economic fluctuations, the focus remains on implementing effective policies and fostering an environment conducive to sustained growth.