Non-oil pushes GDP up by 3.84% in Q4

•Service sector holds on to 57.4% dominance as NBS delays rebasing
Nigeria’s push for non-oil growth appears to be paying off as the sector’s contribution to output grew to 95.4 per cent in the fourth quarter (Q4) of last year.

The oil sector could only contribute a paltry 4.6 per cent during the period.

The National Bureau of Statistics (NBS), which had earlier informed the public that it would soon release the rebased gross domestic product (GDP), could not keep its promise as it used the old template for the data released yesterday.

There was no explanation from the statistics office on why it failed to raise the GDP.

Analysts say the inability to release rebased GDP figures is a significant concern, noting that rebased figures are essential for providing an accurate and up-to-date picture of the economy.

They noted that the GDP figures released yesterday may not accurately reflect the current structure and size of the Nigerian economy, particularly given the rapid changes in sectors like technology and services.

The reform measures introduced by the current administration brought with it an intense hardship on the populace. With high inflation draining the purchasing power of the citizens, many businesses have either shut down or found their way out of the country, throwing many into the labour market.

According to the report released, the GDP in real terms grew by 3.84 per cent in the fourth quarter (Q4) of 2024 on a year-on-year basis, which was 0.38 per cent points higher than the rate recorded in Q4 of 2023.

The report shows that 2024 ended with an overall annual GDP growth rate of 3.4 per cent, this is higher than the projections by agencies like the International Monetary Fund (IMF), which had earlier projected that the country’s GDP would grow by 3.2 per cent.

The NBS reported that the services sector remains the major driver of the economy growing by 5.37 per cent and contributing 57.38 per cent to the aggregate GDP.

On a quarter-on-quarter basis, the real GDP grew by 10.99 per cent in Q4, reflecting a higher production level than in Q3.

In nominal terms, aggregate GDP stood at N78.374 trillion in Q4, indicating a year-on-year nominal growth rate of 18.91 per cent.

This is higher than the value of N65.9 trillion in Q4 2023 and N71.131 trillion in the preceding quarter.

The NBS reported that the economic performance of the non-oil sector in Q4 is attributed to the growth recorded in some economic activities.

Analysis of the report shows that the major contributing economic activities in real terms in the quarter under review are crop production (23.42 per cent), trade (15.11 per cent), telecommunication (14.4 per cent) and real estate (5.88 per cent)

The report shows that agriculture contributed 25.59 per cent; industry, 17.03 per cent and services, 57.38 per cent. Agriculture and industry’s contribution was less than their contributions in Q4 of 2023 by 0.53 per cent and 0.31 per cent points.