Nigeria’s gross domestic product (GDP) grew by 2.98% in the first quarter (Q1) of 2024, up from 2.31% in the same period in 2023.
However, on a quarterly basis, GDP growth decreased from 3.46% in the fourth quarter (Q4) of 2023 to the current rate of 2.98%.
The National Bureau of Statistics (NBS) reported that this growth in Q1 was driven by the services sector, which grew by 4.32% and contributed 58.04% to the total GDP.
10.Motor Vehicle Assembly – Surprisingly, this sector made it to the top ten with a 4.6% growth in the first quarter of 2024, although this is slightly lower than the 4.93% growth recorded in the fourth quarter of 2023.
9. Road Transport – A vital part of the Nigerian economy, road transport facilitates the movement of goods and people and is preferred due to its relatively lower cost. The sector grew by 5.58% in Q1 of 2024, showing a recovery after a 33.76% decline in Q4 of 2023. Over the financial year 2023, the sector saw a decline of 35.91%.
8.Crude Petroleum and Natural Gas – As Nigeria’s main source of foreign exchange, crude oil plays a crucial role in the economy. In 2017, Nigeria had 187 trillion cubic feet (tcf) of proven gas reserves, making it the 9th largest in the world according to Worldometer. This sector grew by 5.70% in Q1 2024, a decrease from the 12.11% growth seen in Q4 2023.
7. Transport Services – With a population of over 200 million, transport services are a significant industry in Nigeria. The sector experienced a 5.93% growth in Q1 2024, an improvement from the 3.42% growth recorded in the previous quarter.
6. Telecommunications– Nigeria had 223 million phone users and 227 million mobile subscribers in early 2023, according to the National Communications Commission (NCC). This sector witnessed a growth of 6.23% during the quarter. However, this marks a marginal decline when compared to the 6.93% growth recorded in the last quarter of 2023
5. Water Supply, Sewage, and Waste Management: The growth rate in this sector declined from 7.44% in Q4 2023 to 6.95% in the first quarter of 2024.
- Insurance: The insurance industry in the financial services sector grew from 8.27% in the fourth quarter of 2023 to 8.34% in the period under review. Despite its small size, the sector is promising due to the country’s large population and growing awareness about its activities in Nigeria.” 3.Financial Institutions: The sector experienced significant growth of 33.30% in the first quarter of 2024, slightly up from 31.44% in the previous quarter. This sector encompasses banks, fintech companies, among others. 2.Rail Transport and Pipelines: There was a remarkable turnaround in this sector, with growth shifting from a contraction of –1.97% in full-year 2023 to 66.63% in the first quarter of 2024. The increasing use of rail transport is attributed to its speed and improved security compared to road transport.
1. Metal Ores: Similar to the turnaround in the rail transport sector, the metal ores sector rebounded from a negative growth of –17.39% in the last quarter of 2023 to a remarkable +114.35% in Q1 2024. This makes it the fastest-growing sector in the Nigerian economy for the first quarter of 2024.”
