(Ecofin Agency) - In Q4 2024, the non-oil sector accounted for 95.4% of Nigeria's GDP, with the services sector leading the way.

Nigeria’s real GDP grew by 3.84% year-on-year in Q4 2024, up from 3.46% in Q4 2023, the National Bureau of Statistics (NBS) reported on February 25.

The growth is largely attributed to the non-oil sector, particularly the services sector, which saw a growth of 5.37%, contributing 57.38% to the overall GDP. Meanwhile, the agricultural and industrial sectors showed slower growth, with increases of just 1.76% and 2%, respectively.

The NBS report highlighted that the non-oil sector contributed 95.40% to the national GDP in real terms in the fourth quarter of 2024, slightly up from 95.30% in the same period of 2023 and higher than the 94.43% recorded in Q3 2024.

Nigeria’s oil sector saw a modest real growth of 1.48% year-on-year in the fourth quarter of 2024, a significant drop from the 12.11% growth recorded in Q4 2023. The oil sector’s contribution to the total real GDP was 4.6% in Q4 2024, down from 4.7% in the same period of 2023 and 5.57% in the previous quarter.

This growth marks the second consecutive increase, following the 3.46% rise in Q3 2024. Despite the economic challenges posed by ongoing reforms, Nigerian President Bola Tinubu expressed optimism about the trend, viewing it as a sign of a strong economic recovery driven by the reforms in place.

In January 2025, Nigeria also announced a change in how GDP is calculated, now including illicit activities and new sectors such as the digital economy, pension fund management, and activities under the National Health Insurance Scheme (NHIS).

For 2024, the country’s annual GDP growth was 3.4%, slightly below the government’s forecast of 3.76%, but higher than the International Monetary Fund’s estimate of 2.9%.