Nigeria’s economy grew in Q3 2024 – CBN

This expansion was primarily driven by the non-oil sector, as highlighted in the Central Bank of Nigeria’s (CBN) Economic Report for the third quarter of 2024.

According to the report, inflation reduced during the period, reflecting a decline in food prices within the Consumer Price Index basket, supported by a restrictive monetary policy stance.

Domestic crude oil production also increased due to enhanced security around oil pipeline infrastructure in the Niger Delta.

Despite ongoing challenges, the economy maintained growth momentum, marking the third consecutive quarterly expansion in 2024.

The 3.46% growth surpassed the 3.19% recorded in Q2 2024 and the 2.54% seen in Q3 2023.

This was achieved through efforts to enhance the business environment, simplify regulatory processes, and improve business infrastructure.

The banking sector recapitalization initiative also bolstered growth in the services sector, particularly in finance and insurance.

Additionally, government initiatives aimed at increasing crude oil production to 2 million barrels per day by year-end supported continued growth in the oil sector.

Oil Sector Performance

The oil sector grew by 5.17% year-on-year in Q3 2024, contributing 0.28 percentage points to overall growth.

However, this was slower than the 10.15% growth in the previous quarter due to a drop in Bonny Light crude prices to $82.07/b from $86.92/b in Q2 2024.

Crude oil production increased from 1.27 mbpd in Q2 to 1.33 mbpd in Q3, sustaining the sector’s positive contribution.

Non-Oil Sector Highlights

The non-oil sector grew by 3.37% in Q3 2024, up from 2.80% in Q2, contributing 3.18 percentage points to total growth.

This expansion was driven by the financial and insurance, information and communication, crop production, trade, transportation, and real estate sub-sectors.

The services sector grew at 5.19%, accounting for 53.58% of GDP. Within this, the financial and insurance sub-sector expanded by 30.83%, spurred by gains from the CBN’s recapitalization exercise and higher interest rates.

The information and communications sub-sector grew by 5.92%, driven by digital services such as e-commerce and mobile banking.

The transport and storage sub-sector rebounded with 12.15% growth, supported by improved road transport security and investment in infrastructure.

Agriculture and Industry Sector Performance

The agriculture sector grew modestly by 1.14%, driven by favorable weather and increased staple crop harvests, despite a contraction in the fishing sub-sector (-1.91%).

The industry sector grew by 2.18%, reflecting gains in crude oil production and improvements in mining, quarrying, and water supply activities.

However, growth was slower than in the preceding quarter due to contractions in the mining and quarrying sub-sector (-61.36%).

In summary, the CBN report underscores the Nigerian economy’s resilience and growth across various sectors, supported by targeted policies and strategic initiatives.