Nigeria’s economy recorded notable progress in the third quarter of 2024, growing by 3.46% year-on-year, according to the National Bureau of Statistics (NBS). This exceeded the 3.19% growth recorded in the second quarter and surpassed the 2.54% growth in the same period last year.
While President Bola Tinubu expressed optimism about the results, he emphasized that further work was needed to ensure the benefits of this growth reach all Nigerians.
In a statement released by his Special Adviser on Media, Sunday Dare, Tinubu acknowledged that the positive GDP figures reflected the effectiveness of recent economic reforms.
The statement said: “The 3.46 percent growth indicates Nigeria is recovering from the reforms’ unintended effects.
“President Tinubu said his administration has not and will never forget his promise of a $1 trillion economy by 2030.
“He assured that once the economy is rebased by early 2025 to capture its dynamism and record significant changes that have occurred in different sectors, the country will be on its way to shared prosperity.”
The statement explained that the latest GDP growth in the third quarter was driven by key sectors such as Agriculture, Transport, Education, Health, Real Estate, Finance and Insurance, ICT, Trade, and Manufacturing.
“This performance once again shows that the reforms embarked upon by the Tinubu administration to reposition the economy and ensure better fiscal management are beginning to yield fruits,” it said.
It added: “The proposed tax reforms also indicate the administration’s resolve to reduce the tax burden on small businesses and spread prosperity to the poor.
“The new tax regime seeks to promote equity by reducing what is known as the headquarters effect-a situation where states where company headquarters are based get more benefits because their taxes for the whole nation are remitted—in favour of spatial and demographic equity.
“I am excited by the latest report from the National Bureau of Statistics that our economy grew in the third quarter more than last quarter and even beyond projected estimates.
“While I welcome this development, the latest figure also shows the much work that needs to be done. We won’t rest until Nigerians feel the positive impacts in their pockets and experience a better living standard. My administration remains committed to the welfare of our people.”
According to the NBS report, the growth was primarily driven by the services sector, which expanded by 5.19% and contributed 53.58% to the total GDP. Other key sectors, including Agriculture, Manufacturing, ICT, and Real Estate, also played vital roles. However, the agriculture and oil sectors grew at slower rates compared to previous quarters, with agriculture posting a modest 1.14% growth.
On the employment front, the unemployment rate declined to 4.3% in the second quarter of 2024, down from 5.3% in Q1. The employment-to-population ratio improved to 76.1%, signaling a more engaged workforce.
The oil sector showed mixed results, contributing 5.5% to GDP, slightly higher than the 5.48% recorded in Q2. Daily oil production averaged 1.47 million barrels per day (mbpd), reflecting marginal growth compared to previous quarters.
Analysts noted the challenges posed by high food inflation and rising energy costs. These factors, they said, had impacted industries and agriculture but were partially offset by the strong performance in services and telecommunications.
