Nigeria’s Gross Domestic Product (GDP) recorded a year-on-year growth of 3.19% in real terms for the second quarter of 2024, according to the latest data released by the National Bureau of Statistics (NBS). This growth rate is a significant improvement from the 2.51% recorded in Q2 2023 and the 2.98% observed in Q1 2024.
The growth was largely driven by the Services sector, which expanded by 3.79% and contributed 58.76% to the total GDP. The Industry sector also showed notable progress, with a 3.53% increase, a sharp turnaround from the -1.94% decline recorded in Q2 2023. The Agriculture sector, however, saw a modest growth of 1.41%, slightly down from the 1.50% growth in the same period last year.
This positive GDP performance aligns with recent economic indicators, including a decrease in the headline inflation rate to 33.40% in July 2024, down from 34.19% in June 2024. Financial analysts suggest that the improving economic conditions may deter the Central Bank of Nigeria (CBN) from raising interest rates, which currently stand at 26.75%.
