Nigerian GDP Expands 3.2% in Second Quarter on Services Sector

BREAKING NEWSAugust 26, 2024 at 1:09 PM UTC

TLDR

Nigeria's GDP grows by 3.19% in Q2 2024, driven by increased crude production and a strong services sector.
Services sector expands by 3.79%, contributing 58.76% to the total GDP.
Growth in GDP showcases the pivotal role of the services sector in Nigeria's economic development.

Nigeria’s Gross Domestic Product (GDP) grew by 3.19% year-on-year in real terms during the second quarter of 2024, surpassing the 2.51% growth in Q2 2023 and 2.98% in Q1 2024.

The performance was largely fueled by higher crude production and the services sector, which expanded by 3.79% and contributed 58.76% to the total GDP.

This marks a significant boost in Nigeria's economic momentum, highlighting the Services sector's critical role in driving the nation's growth.

Key Takeaways

The services sector's strong performance underscores its increasing importance in the Nigerian economy, contributing nearly 60% to the GDP. This growth trajectory suggests that Nigeria is on a path to further economic stabilization, with the sector emerging as a key pillar. The year-on-year improvement signals positive momentum, which, if sustained, could enhance investor confidence and foster broader economic diversification in the country. Nigerians are facing one of the West African nation's worst economic crises in years triggered by surging inflation, the result of monetary policy reforms that have pushed the currency to an all-time low against the dollar and the removal of fuel subsidy. The situation has provoked anger and protests across the country.

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