Nigeria’s financial system confirmed resilience within the third quarter of 2024, recording a GDP development price of three.46% year-on-year, an enchancment from 3.19% in Q2 2024 and considerably larger than the two.54% recorded in Q3 2023.
This development was pushed primarily by the Companies sector, which expanded by 5.19%, contributing over 53.58% to the combination GDP.
Whereas the non-oil sector remained the cornerstone of development, posting a 3.37% improve in actual phrases, the oil sector made modest positive factors, rising by 5.17% after contracting in Q3 2023.
The next rating highlights the highest 10 fastest-growing sectors in Q3 2024, with comparisons to earlier quarters the place relevant.
10. Arts, Leisure, and Recreation (4.74%)
- Q2 2024: 1.79%
- Q1 2024: 4.44%
The Arts, Leisure, and Recreation sector grew by 4.74% in Q3 2024, regaining momentum after a slowdown in Q2.
- Its development is linked to elevated actions in Nigeria’s artistic business, in addition to spending on leisure and cultural occasions. In comparison with Q1, the place it grew at 4.44%, the sector has proven resilience, pushed by rising demand for leisure content material and performances.
- This additionally explains why the sector has recorded a GDP development price each quarter for the reason that first quarter of 2021.
- The Arts, Leisure and Recreation sector makes up about 0.2% of Nigeria’s GDP as of the third quarter of the 12 months.
9. Crude Petroleum and Pure Gasoline (5.17%)
- Q2 2024: 10.15%
- Q1 2024: 5.70%
The oil sector posted 5.17% development in Q3, marking a slowdown in comparison with its spectacular 10.15% efficiency in Q2 2024.
- However, the sector has maintained a gradual tempo relative to its 5.70% development in Q1 2024.
- Improved crude oil manufacturing, which averaged 1.47 million barrels per day (mbpd) in Q3, stays a key driver, however challenges in ramping up output proceed to restrict potential development.
- This sector contributes 5.57% to Nigeria’s GDP.
8. Water Transport (6.42%)
- Q2 2024: 33.05%
- Q1 2024: 4.34%
Water Transport slowed considerably in Q3 2024 to 6.42%, down from the distinctive 33.05% development seen in Q2.
It’s unclear what could have contributed to this sharp drop nevertheless our analysts recommend this may very well be because of a normalization of exercise after the sharp increase in Q2.
Nonetheless, the sector stays above its Q1 efficiency of 4.34%, reflecting sustained investments in delivery and logistics programs.
7. Telecommunications (6.78%)
- Q2 2024: 5.17%
- Q1 2024: 6.23%
The Telecommunications sector, a pillar of Nigeria’s digital financial system, grew by 6.78% in Q3, up from 5.17% in Q2 and better than 6.23% in Q1 2024.
The sector continues to learn from rising web penetration and cell phone adoption, with rising reliance on knowledge providers for enterprise, schooling, and communication. That is regardless of the challenges it has confronted this 12 months with foreign exchange devaluation and rising price of operations.
As one of many largest contributors to the non-oil GDP with about 13.9%, Telecommunications stays a important driver of financial stability.
6. Water Provide, Sewerage, Waste Administration, and Remediation (9.78%)
- Q2 2024: 8.20%
- Q1 2024: 6.95%
This sector expanded by 9.78% in Q3 2024, bettering steadily from 8.20% in Q2 and 6.95% in Q1.
The expansion displays ongoing efforts to enhance public infrastructure and providers, notably in water provide and sanitation.
This sector has recorded a optimistic GDP development price each quarter for the reason that first quarter of 2020 when the worldwide financial system was shut down because of Covid-19.
5. Highway Transport (17.92%)
- Q2 2024: -15.88%
- Q1 2024: 5.58%
Highway Transport made a outstanding restoration in Q3, rising by 17.92%, reversing the sharp contraction of -15.88% in Q2 2024.
This bounce-back was pushed by modest enhancements in street networks, elevated logistics exercise, and the resumption of economic transportation after disruptions earlier within the 12 months because of larger transportation prices..
The expansion price additionally far exceeds the 5.58% recorded in Q1, showcasing the sector’s means to rebound strongly.
4. Rail Transport and Pipelines (19.68%)
- Q2 2024: 57.14%
- Q1 2024: 66.63%
Rail Transport and Pipelines grew by 19.68% in Q3 2024, down from 57.14% in Q2 and 66.63% in Q1. Whereas development has slowed, the sector stays an important a part of Nigeria’s infrastructure enlargement.
Ongoing investments in rail programs and pipeline networks are bettering vitality and items transportation, boosting industrial productiveness in key areas.
This sector is the smallest sector within the Nigerian financial system however stays essential to driving financial development.
3. Insurance coverage (19.81%)
- Q2 2024: 13.30%
- Q1 2024: 8.34%
The Insurance coverage sector grew by 19.81% in Q3 2024, persevering with its upward development from 13.30% in Q2 and 8.34% in Q1.
The sector’s development is pushed by the rising adoption of insurance coverage merchandise, elevated shopper consciousness, and revolutionary digital platforms that make insurance policies extra accessible.
It displays the maturity of Nigeria’s monetary providers panorama particularly as extra Nigerians change into financially included.
2. Steel Ores (21.83%)
- Q2 2024: 58.12%
- Q1 2024: 114.35%
Though development within the Steel Ores sector moderated to 21.83% in Q3, down from 58.12% in Q2 and 114.35% in Q1, it stays the fastest-growing sector in Q3.
Pushed by heightened curiosity in mining exercise and powerful international demand for Nigeria’s metals, this sector continues to be a important element of the nation’s diversification technique.
Nonetheless, the deceleration highlights the necessity for constant insurance policies to keep up mining momentum.
The shortage of constant development within the sector can also be blamed on poor authorities coverage and willingness to implement actions required to draw investments within the sector.
1. Monetary Establishments (31.92%)
- Q2 2024: 30.37%
- Q1 2024: 33.3%
Monetary Establishments grew by 31.92% in Q3 2024, sustaining its sturdy place as a key driver of non-oil development.
Although barely beneath its 33.3% in Q1, the sector has proven consistency throughout all quarters, reflecting the affect of digital banking, monetary inclusion insurance policies, and regulatory stability.
However extra importantly, the sector’s development is as a result of central bank coverage that has seen rates of interest rise this 12 months to over 25% for fixed-income safety.
The central bank’s coverage of sustaining excessive rates of interest additionally helped business banks increase their gross earnings which Nairametrics estimated topped N15 trillion within the first 9 months of the 12 months in comparison with N7 trillion in the identical interval in 2023.
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