Nigeria's Gross Domestic Product (GDP) saw a year-on-year increase of 3.19% in real terms in the second quarter of 2024, driven primarily by strong performance in the services sector. This growth marks an improvement over the 2.51% recorded in the same quarter of the previous year, according to the latest data released by the National Bureau of Statistics (NBS) on Monday.
Quarterly
GDP Performance and Key Drivers
The
GDP growth rate in Q2 2024 also surpassed the 2.98% growth achieved in the
first quarter of the year. The services sector emerged as the main contributor
to this economic expansion, recording a growth of 3.79% and accounting for
58.76% of the aggregate GDP. The sector's robust performance played a pivotal
role in driving the overall economic growth in the second quarter.
Further
analysis of the GDP data reveals varying growth patterns across different
sectors. The agriculture sector experienced a modest growth of 1.41%, a slight
decline from the 1.50% growth recorded in Q2 2023. In contrast, the industrial
sector showed significant improvement, growing by 3.53% compared to a
contraction of -1.94% in the same period last year.
Sector
Contributions to GDP
In
terms of GDP contribution, both the industry and services sectors increased
their shares in Q2 2024 compared to the corresponding quarter of 2023. The
aggregate GDP at basic prices reached N60,930,000.58 million in nominal terms
for the second quarter of 2024, reflecting a substantial increase from the
N52,103,927.13 million recorded in Q2 2023. This represents a year-on-year
nominal growth of 16.94%.
Insights
from Economic Experts
Despite
the reported GDP growth, economic experts, including Ngozi Okonjo-Iweala,
Director-General of the World Trade Organization (WTO) and former Nigerian
Minister of Finance, have pointed out a steady decline in Nigeria's GDP growth
since 2014. Okonjo-Iweala highlighted that the recent gains have not fully
translated into improved living standards for the majority of Nigerians.
Economic
Challenges Amid Growth
The
reported GDP growth comes amid ongoing economic hardship faced by many
Nigerians, characterized by a rising cost of living and inflation under
President Bola Ahmed Tinubu's administration. The growth figures, while
positive, underscore the complex economic environment in Nigeria, where
structural challenges and inflation continue to strain household incomes and
consumer spending.
Conclusion
and Future Outlook
While
Nigeria's economy has shown resilience with a GDP growth of 3.19% in Q2 2024,
the underlying economic challenges remain significant. The country must address
these issues to ensure that economic growth translates into tangible benefits
for its citizens. Continuous monitoring and effective economic policies will be
crucial in sustaining this growth trajectory and improving the overall economic
well-being of Nigerians.
Stay updated with Naija NewsHawk for more detailed analysis and coverage on Nigeria's economic performance and its impact on the everyday lives of Nigerians.
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