Experts have applauded the speed of growth of the non-oil sector’s contribution to the national Gross Domestic Product (GDP) in recent times, saying, this development has ensured that Nigeria does not rely solely on oil sector revenue generation for survival.
The non-oil sector has continued to be Nigeria’s economic stabiliser, growing at 3.96 per cent in the fourth quarter (Q4) 2024, its strongest pace in recent quarters.
This is according to the released data from National Bureau of Statistics. Non-oil growth picked up speed at 3.96 per cent, showing that the economy is not entirely dependent on crude. While the oil sector slowed to 1.48 per cent from 5.17 per cent in Q3, likely a mix of production hiccups and price fluctuations.
Amid these developments, Nigeria’s plan to rebase its GDP in 2025, which is set to provide a more accurate reflection of economic performance. The last GDP rebasing in 2014 significantly increased the size of the economy by capturing previously underrepresented sectors such as telecommunications, entertainment, and fintech.
Comercio Partner, in its report titled ‘A Strong Finish, but Challenges Linger’ said, “the non-oil sector is proving to be Nigeria’s stabiliser, but unlocking its full potential requires improvements in infrastructure, security, and policy consistency. Addressing these challenges could help Nigeria gradually build a more resilient economy, less vulnerable to the boom-and-bust cycle of oil dependency.”
It noted that, Nigeria’s economy wrapped up 2024 on a strong note, with GDP growing 3.84 per cent in Q4, saying, although, the nation grappled with the gap between macroeconomic indicators and the lived realities of its citizens, the challenges of soaring inflation, currency depreciation, and high borrowing costs revealed the stark disconnect between statistical growth and the average Nigeria’s quality of life.
On outlook projection, Comercio Partner said that the Q4 2024 GDP growth suggests Nigeria is on a strong trajectory, but sustaining this momentum requires policy consistency, investment in infrastructure, and a more diversified economic base.
“With the oil sector losing steam and agriculture slowing, Nigeria must strengthen non-oil sectors to avoid external shocks.”
The research firm noted that, “Nigeria’s economy continues to be driven by the services sector, but structural weaknesses persist. The financial sector and telecommunications are expanding rapidly, yet agriculture and manufacturing require targeted policy interventions.
“Policymakers should focus on improving agricultural productivity, strengthening trade supply chains, and boosting industrial output through infrastructure investment.”
The director/CEO of Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf stated that the Q4 2024 GDP growth is a reflection of both the gradual recovery of the economy and the resilience of Nigerian entrepreneurs.
He said despite the daunting macroeconomic and structural headwinds, the private investors have continued to forge ahead.
He added that the report highlights the gradual recovery of the economy and the resilience of the Nigerian private sector, saying, “it also underscores the need to consolidate on the stability gains in the macroeconomic environment and fixing the productivity challenges constraining real sector performance.”
We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →
Join Our WhatsApp Channel
