How Service Sector Grew 2024 Fourth Quarter GDP To 3.84 Percent – Statistician General

Statistics released by the National Bureau of Statistics (NBS) has shown that there were increased economic activities stimulated by service sector as the Gross Domestic Product grew by 3.84 percent in the fourth quarter, 2024.

In a statement by the Statistician General of the Federation, Prince Adeyemi Adeniran, releasing the data, he noted that it is 0.38 points higher than the rate recorded in Q4 2023 (3.46%).

The Gross Domestic Product (GDP) growth rate in real terms (Constant price) grew by 3.84% in the fourth quarter (Q4) of 2024 on a year-on-year basis, which is 0.38% points higher than the rate recorded in Q4 2023 (3.46%).

Also, he said that it was higher by 0.38% basic points relative to a similar growth rate of 3.46% recorded in the third quarter (Q3) of 2024.

According to him, “This reflected a higher economic improvement when compared to the preceding quarter (Q3 2024), with the service sector still playing the role of the major driver of the economy which recorded a growth of 5.37% and contributed 57.38% to the aggregate GDP.

“Similarly, on a quarter-on-quarter basis, the real GDP grew by 10.99% in Q4 2024, reflecting a higher production level than in Q3 2024.

“The estimated economic activity in real terms for Q4 2024 stood at ₦22,610,393.45 million, which is higher than the rates recorded in Q3 2024 and Q4 2023 which stood at ₦20,115,766.93 million and ₦21,773,263.25 million.

“This also highlighted the improvement in the quarter under review compared to the previous quarters of Q3 2024 and Q4 2024.”

The Statistician General explained that the year 2024 ended with an overall annual GDP growth rate of 3.40%, from the 2.74% reported in 2023.

Prince Adeniran observed that there was a decline in the performance of agriculture and Industry in 2024 relative to 2023, while the performance of the Services sector improved in 2024.

He said: “The major contributing economic activities in real terms in the quarter under review (i.e., Q4 2024) are Crop Production 23.42%, Trade 15.11%, Telecommunication 14.40%, Real Estate 5.88%, Financial Institutions 5.76%, and Crude petroleum 4.60%.

“On a broad classification of the economic activities into Agriculture, Industry, and Services sectors based on growth, the Agricultural Sector grew by 1.76% and the Industry grew by 2.00% which shows a decline compared to the rate recorded in Q4 2023 at 2.10% and 3.86%. The Services sector recorded a 5.37% increase compared to the 3.98% recorded in Q4 2023.

“Analyses of the contributions of the broad economic sectors in the period under review. Agriculture contributed 25.59%, Industry 17.03%, and Services 57.38%. Agriculture and industry’s contribution was less than their contributions in Q4 of 2023 by 0.53% and 0.31 basis points. The Services sector had the highest contribution to the GDP in Q4 2024, surpassing their contribution in the corresponding quarter of 2023 by 0.83% basis points.”