Nigeria’s GDP grows, oil production drops in Q2 2024 – NBS

Nigeria’s Gross Domestic Product (GDP) grew while oil production dropped between the first and second quarters of 2024, according to official data.

The GDP grew by 3.19 per cent year-on-year in real terms in the second quarter of 2024, the National Bureau of Statistics has said.

The NBS said this growth rate is higher than the 2.51 per cent recorded in the second quarter of 2023 and higher than the 2.98 per cent growth in the first quarter of 2024.

The statistics bureau said this in its “Nigerian Gross Domestic Product (GDP) Report Q2 2024” released on Monday.

The report said the GDP’s performance in the second quarter of 2024 was driven mainly by the Services sector, which recorded a growth of 3.79 per cent and contributed 58.76 per cent to the aggregate GDP.

It said the agriculture sector grew by 1.41 per cent, from the 1.50 per cent growth recorded in the second quarter of 2023.

It added that the growth of the Industry sector was 3.53 per cent, an improvement from -1.94 per cent recorded in the second quarter of 2023.

In terms of share of the GDP, the bureau said the Industry and Services sectors contributed more to the aggregate GDP in the second quarter of 2024 compared to the corresponding quarter of 2023.

“In the quarter under review, aggregate GDP at basic price stood at N60,930,000.58 million in nominal terms. This performance is higher when compared to the second quarter of 2023 which recorded aggregate GDP of N52,103,927.13 million, indicating a year-on-year nominal growth of 16.94 per cent,” the report said.

Oil sector

The bureau noted that the nation in the second quarter of 2024 recorded an average daily oil production of 1.41 million barrels per day (mbpd), higher than the daily average production of 1.22 mbpd recorded in the same quarter of 2023 by 0.19 mbpd and lower than the first quarter of 2024 production volume of 1.57 mbpd by 0.16 mbpd.

It said the real growth of the oil sector was 10.15 per cent (year-on-year) in Q2 2024, indicating an increase of 23.58 per cent points relative to the rate recorded in the corresponding quarter of 2023 (-13.43 per cent).

The NBS explained that the growth increased by 4.45 per cent points when compared to Q1 2024, which was 5.70 per cent.

“On a quarter-on-quarter basis, the oil sector recorded a growth rate of -10.51 per cent in Q2 2024.

“The oil sector contributed 5.70 per cent to the total real GDP in Q2 2024, up from the figure recorded in the corresponding period of 2023 and down from the preceding quarter, where it contributed 5.34 per cent and 6.38 per cent respectively,” the report said.

Non-oil sector

The non-oil sector grew by 2.80 per cent in real terms during the reference quarter (Q2 2024).

The NBS said this rate was lower by 0.78 per cent points compared to the rate recorded in the same quarter of 2023 which was 3.58 per cent and relatively same with the 2.80 per cent recorded in the first quarter of 2024.

“This sector was driven in the second quarter of 2024 mainly by financial and insurance (financial institutions); information and communication (telecommunications); agriculture (crop production); trade; and manufacturing (food, beverage, and tobacco), accounting for positive GDP growth,” it said.

In real terms, the bureau said the non-oil sector contributed 94.30 per cent to the nation’s GDP in the second quarter of 2024, lower than the share recorded in the second quarter of 2023 which was 94.66 per cent and higher than the first quarter of 2024 recorded as 93.62 per cent.