The Nigerian Bureau of Statistics released economic output data for the second quarter of 2024 on Monday. The report highlighted growth in the Nigerian economy of 3.19% compared to last year. When looking at drivers by sector, the Services sector which accounts for 58.76% of Nigerian economic output grew by 3.79% while agriculture recovered from negative growth of -1.94% to post gains of 3.53%. Crop production, Trade, and Information Communication services were the largest contributors to output accounting for about 53% of GDP.
Other notable sectors that contribute to GDP include oil and gas (5.7%), construction (3.17%), and manufacturing (8.46%). The total real output for the Quarter is 18.29 trillion Naira.
So What?
At a current population growth rate of 2.4%, a GDP growth rate of 3.19% is not bad (any time GDP grows faster than population, it means that there is a productivity gain).
However, when you look at the makeup of the growth drivers you would see where the problems lie. Although the economy is growing, certain sectors necessary for economic development are underrepresented. Economic development is economic growth that improves the quality of life of the citizens not just increasing the size of the economy.
And key sectors like construction which is needed for infrastructure development, stood at just 3.17%. Manufacturing that creates high-value jobs sits at just 8.46% of GDP.
The growth of an economy especially one with multifaceted challenges like Nigeria needs to be more intentional. Fiscal policy that supports inclusive growth needs to be implemented because growth that does not create more opportunities for economic participants will lead to inequality and not fix poverty.
Quick question tho- any other sources of data for Nigeria’s economic growth or otherwise?
Independent data sources won’t hurt 😔