Nigeria’s economy experienced a significant boost in the fourth quarter of 2024, achieving a 3.84% increase in Gross Domestic Product (GDP), marking the fastest growth in three years. This upturn was predominantly driven by a 5.37% year-on-year expansion in the services sector, as reported by the National Bureau of Statistics.
For the entire year of 2024, the economy grew by 3.40%, an improvement from the 2.74% growth recorded in 2023. Despite this positive trend, the growth rate fell short of President Bola Tinubu’s ambitious target of 6%. In response, Nigeria plans to rebase its GDP data to better reflect emerging sectors such as Information and Communication Technology (ICT) and e-commerce, aiming to provide a more accurate representation of its economic landscape.
The International Monetary Fund (IMF) projects a 3.2% growth for Nigeria’s economy in 2025. While this forecast is slightly lower than the 2024 growth rate, it underscores the need for continued economic reforms and diversification to sustain and potentially accelerate growth in the coming years.
In summary, Nigeria’s recent economic performance highlights a positive trajectory, with notable growth in the services sector. However, achieving higher growth rates will require ongoing efforts to address structural challenges and capitalize on emerging economic opportunities.
