₦airaland Forum

Nigeria’s economy showed resilience in the third quarter of 2024, recording a GDP growth rate of 3.46% year-on-year, an improvement from 3.19% in Q2 2024 and significantly higher than the 2.54% recorded in Q3 2023.

This growth was driven primarily by the Services sector, which expanded by 5.19%, contributing over 53.58% to the aggregate GDP.

While the non-oil sector remained the cornerstone of growth, posting a 3.37% increase in real terms, the oil sector made modest gains, growing by 5.17% after contracting in Q3 2023.

The following ranking highlights the top 10 fastest-growing sectors in Q3 2024, with comparisons to earlier quarters where applicable.

10. Arts, Entertainment, and Recreation (4.74%)

Q2 2024: 1.79%

Q1 2024: 4.44%

The Arts, Entertainment, and Recreation sector grew by 4.74% in Q3 2024, regaining momentum after a slowdown in Q2.

Its growth is linked to increased activities in Nigeria’s creative industry, as well as spending on leisure and cultural events. Compared to Q1, where it grew at 4.44%, the sector has shown resilience, driven by rising demand for entertainment content and performances.


This also explains why the sector has recorded a GDP growth rate every quarter since the first quarter of 2021.


The Arts, Entertainment and Recreation sector makes up about 0.2% of Nigeria’s GDP as of the third quarter of the year.

9. Crude Petroleum and Natural Gas (5.17%)

Q2 2024: 10.15%

Q1 2024: 5.70%

The oil sector posted 5.17% growth in Q3, marking a slowdown compared to its impressive 10.15% performance in Q2 2024.

Nevertheless, the sector has maintained a steady pace relative to its 5.70% growth in Q1 2024.

Improved crude oil production, which averaged 1.47 million barrels per day (mbpd) in Q3, remains a key driver, but challenges in ramping up output continue to limit potential growth.

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 significantly in Q3 2024 to 6.42%, down from the exceptional 33.05% growth seen in Q2.

It is unclear what may have contributed to this sharp drop however our analysts suggest this could be due to a normalization of activity after the sharp boost in Q2.

However, the sector remains above its Q1 performance of 4.34%, reflecting sustained investments in shipping and logistics systems.

7. Telecommunications (6.78%)

Q2 2024: 5.17%

Q1 2024: 6.23%

The Telecommunications sector, a pillar of Nigeria’s digital economy, grew by 6.78% in Q3, up from 5.17% in Q2 and higher than 6.23% in Q1 2024.

The sector continues to benefit from rising internet penetration and mobile phone adoption, with increasing reliance on data services for business, education, and communication. This is despite the challenges it has faced this year with forex devaluation and rising cost of operations.

As one of the largest contributors to the non-oil GDP with about 13.9%, Telecommunications remains a critical driver of economic stability.

6. Water Supply, Sewerage, Waste Management, and Remediation (9.78%)

Q2 2024: 8.20%

Q1 2024: 6.95%

This sector expanded by 9.78% in Q3 2024, improving steadily from 8.20% in Q2 and 6.95% in Q1.

The growth reflects ongoing efforts to improve public infrastructure and services, particularly in water supply and sanitation.

This sector has recorded a positive GDP growth rate every quarter since the first quarter of 2020 when the global economy was shut down due to Covid-19.

5. Road Transport (17.92%)

Q2 2024: -15.88%

Q1 2024: 5.58%

Road Transport made a remarkable recovery in Q3, growing by 17.92%, reversing the sharp contraction of -15.88% in Q2 2024.

This bounce-back was driven by modest improvements in road networks, increased logistics activity, and the resumption of commercial transportation after disruptions earlier in the year due to higher transportation costs..

The growth rate also far exceeds the 5.58% recorded in Q1, showcasing the sector’s ability 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. While growth has slowed, the sector remains a vital part of Nigeria’s infrastructure expansion.

Ongoing investments in rail systems and pipeline networks are improving energy and goods transportation, boosting industrial productivity in key regions.

This sector is the smallest sector in the Nigerian economy but remains crucial to driving economic growth.

3. Insurance (19.81%)

Q2 2024: 13.30%

Q1 2024: 8.34%

The Insurance sector grew by 19.81% in Q3 2024, continuing its upward trend from 13.30% in Q2 and 8.34% in Q1.

The sector’s growth is driven by the rising adoption of insurance products, increased consumer awareness, and innovative digital platforms that make policies more accessible.

It reflects the maturity of Nigeria’s financial services landscape especially as more Nigerians become financially included.

2. Metal Ores (21.83%)

Q2 2024: 58.12%

Q1 2024: 114.35%

Although growth in the Metal Ores sector moderated to 21.83% in Q3, down from 58.12% in Q2 and 114.35% in Q1, it remains the fastest-growing sector in Q3.

Driven by heightened interest in mining activity and strong global demand for Nigeria’s metals, this sector continues to be a critical component of the country’s diversification strategy.

However, the deceleration highlights the need for consistent policies to maintain mining momentum.

The lack of consistent growth in the sector is also blamed on poor government policy and willingness to implement actions required to attract investments in the sector.

1. Financial Institutions (31.92%)

Q2 2024: 30.37%

Q1 2024: 33.3%

Financial Institutions grew by 31.92% in Q3 2024, maintaining its strong position as a key driver of non-oil growth.

Though slightly below its 33.3% in Q1, the sector has shown consistency across all quarters, reflecting the impact of digital banking, financial inclusion policies, and regulatory stability.

But more importantly, the sector’s growth is due to the central bank policy that has seen interest rates rise this year to over 25% for fixed-income security.

The central bank’s policy of maintaining high interest rates also helped commercial banks boost their gross earnings which Nairametrics estimated topped N15 trillion in the first 9 months of the year compared to N7 trillion in the same period in 2023.

Source: https://nairametrics.com/2024/11/26/gdp-growth-rate-10-fastest-growing-sectors-in-nigerian-economy-as-of-q3-2024/

Audio growths.

The same way you all sung Buhari’s praises for 8 years and we see where it got us is the same you people are doing now. We’ll judge after his first term.

I just don't want nonsense this evening

If corruption is a sector, it would have come first

Nigerian economy is in shambles

Davido., 2024

No Agriculture

Agbadorians and Escobar may keep deceiving themselves, but true Nigerians know that the latter has destroyed the economy of this country and there's no growth happening anywhere.

Dollar nko

Lol

These are all consumable sectors....

There's absolutely nothing different... These sectors will always grow because Nigerians rely on it to carry out it's daily activities....

I was thinking it's something new from the table of Mr. Strategist.. But unfortunately, I was disappointed.

The NBS said the employability strength improved from 43% to 53%. I guess the rich only fix their family members on the job openings.

Forget all these trash, nothing is growing under Tinubu

It is really growing, so well.

Telecommunication, yet one struggles with internet.

Railway

Crude oil and Natural gas, hmm?? okay

As expected!

Financial institution is the fastest growing with GDP. With alot of fintech around the corner. Banks are cashing out big time.

I am curious to know what the figures were before May 2023

Every day audio growth everywhere..

E be like say this administration wan dey use altered statistics as their Modus operandi o

Because how will the whole country be on verge of collapse and you will be parading stvpid statistics up and down??

As the president once said "Na statistics we go chop?"

Na fake statistics we go chop.
Another lamba.
We are experiencing growth in GDP, yet Dollar keep rising like the rising sun.

This is what happens when you live in LAGOS and you think Nigeria revolves around LAGOS.

Hmmm... Finally, body go tell everybody.

EPIJOE:
Financial institution is the fastest growing with GDP. With alot of fintech around the corner. Banks are cashing out big time.

The Financial Institution high numbers is merely a reflection of Dollar Floating and Inflation

INSURANCE; Wao, good to know! That's a good one, moving in the right direction. Obviously, the growth is driven by the private sector, govt how far?

It is only agriculture that can make this country great. I wonder why the government doesn't want to declare a state of emergency on it.

G

SmartPolician:
Agbadorians and Ebola may keep deceiving themselves, but true Nigerians know that the latter has destroyed the economy of this country and there's no growth happening anywhere.

Nigeria might really become a country of our dream if they can sell this PH refinery to private investor immediately and Sustain the growth recorded in the last 3 months
Singapore went through a deadly reform to become what it’s today and that might happen to Nigeria as well,I am not commending the government but I am hopeful

See OBI URCHINS above me.


Peter OBI,the man who promised to devalue naira and start borrowing to defend it few weeks ago will never become the president. No this as and No peace!

I need anyone who can help make this floor plan to contact me immediately. I have five of them and it is an ongoing work that will come like two times a month. This is for those that can use any software or App to make drawings. The two pictures are the same, but I have used Adebo Pro to add the fire alarm icon and those arrows indicating a emergency exit route.

So na this kind leadership way Lagos dey enjoy since 1999 make ona carry am go back to Lagos we no want again

If not for very low penetration level, insurance ought to be ahead of financial institutions. A whole lot of awareness still need to be done about the benefits of insurance among Nigeria.

Ezennia101:
I just don't want nonsense this evening

A country that used to boast of 7-8% GDP growth is celebrating less than half of that
Nor be juju be dat

ArinzeAnthony03:
It is only agriculture that can make this country great. I wonder why the government doesn't want to declare a state of emergency on it.

Majority of Nigerian farmers are scammers,government should leave farming to private sectors,maybe offer them free land,incentives and so on
Nigerians farmers keep scamming the Goverment so believe Goverment should stop giving them loan that they won’t pay back.