Nigeria's GDP Grows by 3.19% in Q2 2024 Despite Economic Hardship

 

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.

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