NESG: FG’s reforms drove Nigeria’s 3.8% economic growth in 2024 

According to the NESG GDP Alert: 2024Q4 & Full Year 2024, released on February 27, 2025, the Nigerian economy maintained an upward growth trajectory throughout the year, expanding by 3.8% in the fourth quarter (Q4) of 2024 relative to 3.5% in the corresponding quarter of 2023.

On a quarter-on-quarter basis, the real Gross Domestic Product (GDP) grew by 12.4% in Q4 2024, compared to 11.9% in Q4 2023.

Cumulatively, Nigeria’s GDP growth stood at 3.4% in 2024, surpassing the 2.8% recorded in 2023, NESG noted.

NESG identified a combination of fiscal and monetary policy adjustments, economic liberalization efforts, and increased investment in infrastructure as major factors contributing to the improved economic performance.

The removal of fuel subsidies, exchange rate unification, and aggressive tax reforms were highlighted as key measures that helped stabilize macroeconomic fundamentals and boost investor confidence.

Increased foreign direct investment (FDI) inflows, particularly in the technology, manufacturing, and agricultural sectors, also contributed to the overall economic expansion. The government’s focus on enhancing ease of doing business and providing targeted incentives for the private sector played a pivotal role in sustaining growth momentum.

Despite the positive outlook, NESG’s report noted sectoral disparities, particularly in the electricity sector, which experienced slowed growth due to the incessant collapse of the national grid and vandalization of strategic power infrastructure across the country in 2024.

These persistent challenges limited industrial productivity and increased operational costs for businesses.

NESG noted “Also, the Electricity sector experienced slowed growth due to the incessant collapse of the national grid in 2024 and vandalisation of strategic power infrastructure across the country.”

Conversely, the services sector, which includes telecommunications, fintech, and trade, saw robust growth, driven by increased digital adoption and consumer spending. The agricultural sector also recorded moderate expansion, supported by government-backed initiatives aimed at boosting local food production and improving agricultural value chains.

NESG projects a sustained positive growth trajectory, contingent on continued implementation of structural reforms and strategic investment in key sectors. However, it warned that inflationary pressures, exchange rate volatility, and security concerns remain key downside risks that could hinder economic stability.

The group noted “The government’s bold reforms are yielding results, albeit sub optimal and insufficient to sustain economic growth over the medium term. These reforms, such as the removal of fuel subsidies, exchange rate harmonisation, and other complementary measures aimed at addressing the structural bottlenecks, are found to  favourably impact the performance of key sectors in the year.” 

The report indicates that Nigeria’s economy grew by 3.84% in real terms, an improvement from 3.46% recorded in the same period of 2023 and the preceding quarter.