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Nigeria’s GDP rate increases by 3.46% in Q3 2024 – NBS

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Nigeria’s Gross Domestic Product (GDP), the measure of a country’s economic health, grew by 3.46% (year-on-year) in real terms in the third quarter of 2024, the NBS reports.

This growth rate is higher than the 2.54% recorded in the third quarter of 2023 and higher than the 3.19% recorded in the second quarter of 2024, according to a statement issued on Monday by the National Bureau of Statistics (NBS).

The statement said the performance of the GDP in the third quarter of 2024 was driven mainly by the Services sector, which recorded a growth of 5.19% and contributed 53.58% to the aggregate GDP.

The agriculture sector grew by 1.14%, from the growth of 1.30% recorded in the third quarter of 2023. The growth of the industry sector was 2.18%, an improvement from 0.46% recorded in the third quarter of 2023.

In terms of share of the GDP, the services sector contributed more to the aggregate GDP in the third quarter of 2024 compared to the corresponding quarter of 2023.

In the quarter under review, aggregate GDP at basic price stood at N71 trillion in nominal terms. This performance is higher when compared to the third quarter of 2023 which recorded aggregate GDP of N60.6 trillion, indicating a year-on-year nominal growth of 17.26%.

The real growth of the oil sector was 5.17% (year-on-year) in Q3 2024, indicating an increase of 6.02% points relative to the rate recorded in the corresponding quarter of 2023 (-0.85%).

On a quarter-on-quarter basis, the oil sector recorded a growth rate of 7.39% in Q3 2024. The Oil sector contributed 5.57% to the total real GDP in Q3 2024, up from the figure recorded in the corresponding period of 2023 and down from the preceding quarter, where it contributed 5.48% and 5.70% respectively.

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The non-oil sector grew by 3.37% in real terms during the reference quarter (Q3 2024). This rate was higher by 0.62% points compared to the rate recorded in the same quarter of 2023 which was 2.75% and higher than the 2.80% recorded in the second quarter of 2024. This sector was driven in the third quarter of 2024 mainly by Financial and Insurance (Financial Institutions); Information and Communication (Telecommunications); Agriculture (Crop production); Transportation and Storage (Road Transport); Trade; and Construction, accounting for positive GDP growth.

In real terms, the non-oil sector contributed 94.43% to the nation’s GDP in the third quarter of 2024,  higher than the Nigeria’s Gross Domestic Product (GDP) grew by 3.46% (year-on-year) in real terms in the third quarter of 2024. This growth rate is higher than the 2.54% recorded in the third quarter of 2023 and higher than the second quarter of 2024 growth of 3.19%. The performance of the GDP in the third quarter of 2024 was driven mainly by the Services sector, which recorded a growth of 5.19% and contributed 53.58% to the aggregate GDP. The agriculture sector grew by 1.14%, from the growth of 1.30% recorded in the third quarter of 2023.
The growth of the industry sector was 2.18%, an improvement from 0.46% recorded in the third quarter of 2023. In terms of share of the GDP, the services sector contributed more to the aggregate GDP in the third quarter of 2024 compared to the corresponding quarter of 2023. In the quarter under review, aggregate GDP at the basic price stood at N71,131,091.07 million in nominal terms. This performance is higher when compared to the third quarter of 2023, which recorded aggregate GDP of N60,658,600.37 million, indicating a year-on-year nominal growth of 17.26%. For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors (Pages 5 & 6).

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The real growth of the oil sector was 5.17% (year-on-year) in Q3 2024, indicating an increase of 6.02% points relative to the rate recorded in the corresponding quarter of 2023 (-0.85%). Growth decreased by 4.98% points when compared to Q2 2024 which was 10.15%. On a quarter-on-quarter basis, the oil sector recorded a growth rate of 7.39% in Q3 2024. The Oil sector contributed 5.57% to the total real GDP in Q3 2024, up from the figure recorded in the corresponding period of 2023 and down from the preceding quarter, where it contributed 5.48% and 5.70% respectively.

Nigeria’s Gross Domestic Product (GDP), the measure of a country’s economic health, grew by 3.46% (year-on-year) in real terms in the third quarter of 2024, the NBS reports in  5% and higher than the 2.80% recorded in the second quarter of 2024. This sector was driven in the third quarter of 2024 mainly by Financial and Insurance (Financial Institutions); Information and Communication (Telecommunications); Agriculture (Crop production); Transportation and Storage (Road Transport); Trade; and Construction, accounting for positive GDP growth. In real terms, the non-oil sector contributed 94.43% to the nation’s GDP in the third quarter of 2024, lower than the share recorded in the third quarter of 2023 which was 94.52% and higher than 94.20 % recorded inthe second quarter of 20.

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Double-digit GDP growth necessary to achieve $1trn goal – UBA GMD

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April 15, 2025

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Group Managing Director, United Bank for Africa (UBA), Mr Oliver Alawuba, has said Nigeria requires a double-digit Gross Domestic Product (GDP) growth to achieve the projected one-trillion dollar economy target by 2030.

Alawuba made this remark on Monday in Abuja, at the ongoing 36th Edition of the Finance Correspondents and Business Editors Association of Nigeria Seminar, organised by the Central Bank of Nigeria (CBN).

The theme of the seminar is, “Playing the Global Game: Banking Recapitalisation Towards a One- Trillion Dollar Economy”.

He emphasised the necessity of institutional frameworks and government support for banks to invest in critical infrastructure that would foster accelerated growth of the Nigerian economy.

“We need to grow at double digits to get to one-trillion dollar in 2030. We need 10 per cent growth, which is achievable,” he said.

He noted that only 12 per cent of Nigeria’s GDP is represented by the total assets of banks, while other economies have over 70 per cent to 100 per cent.

According to him, this indicates a significant gap where banks can intervene and help mobilise deposits, resources, and capital, ensuring that other sectors benefit from the banking system.

“The plan so far is highly beneficial for the economy. Strong banks require strong profits. Strong banks are crucial for building the strong economy we desire.

“It’s important that banks remain profitable so they can build a very robust reserve to support the economy and the banks themselves.

“The opportunities in Nigeria are immense. Therefore, sustainability will not be a problem.

“This is because banks will now be able to raise, even with the capitalisation we have undertaken, sufficient capital to truly elevate this economy to the next level,” the managing director added.

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Alawuba also said the 50 per cent Cash Reserve Ratio (CRR) might be unsustainable for economic growth and urged its reduction, just as inflation rate was managed.

He highlighted the importance of security, financial inclusion and addressing infrastructure deficits in roads, ports and power.

He further stressed the need for tax incentives and a transition from a primary to a secondary economy to drive growth.

“We need an institutional framework and government support to invest in infrastructure and other areas to support the economy.

“A 50 per cent CRR is not sustainable if we are going to talk about the growth of the economy.

“I am happy that inflation is responding to the actions of the CBN.

“So, as the inflation rate comes down, we expect the CRR to come down,” he said. (NAN)

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GenCos Ask FG, Stakeholders To Pay N4trn Electricity Debt

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April 15, 2025

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The electricity power generation companies (GenCos) have warned that the over N4 trillion unpaid invoices owed by the federal government and stakeholders for electricity generated threatens their operations.

In a statement on Monday, signed by Sani Bello, chairman of board of trustees, Association of Power Generation Companies (APGC), the GenCos asked the federal government and key stakeholders to urgently address the issue.

According to the association, the issue is currently threatening the continued operation of their power generation plants.

“It is no more news that the power generation companies (GenCos) have continued to bear the brunt of the liquidity crisis in the Nigerian Electric Supply Industry (NESI),” the statement reads.

The association said they have made large-scale investments and have continued to demonstrate commitment by increasing capacities that align with their contract, spanning over 10 years.

The GenCos said expectations of being settled through external support such as “the World Bank PSRO has also been dampened due to other market participants’ inability to meet their respective distribution linked indicators (DLI), enshrined in the Power Sector Recovery Program (PSRP)”.

Moreso, they said the 2024 payment collection rate dropped below 30 percent, and “2025 is not any better, severely affecting GenCo’s ability to meet financial obligations”.

“Tax and Regulatory Challenges: High corporate income tax, concession fees, royalty charges, and new FRC compliance obligations are further straining GenCos’ revenue,” the GenCos said.

“Outstanding Payments: GenCos are currently owed about N4 trillion (N2 trillion for 2024 and N1.9 trillion in legacy debts). No possible solutions, including cash payments, financial instruments, and debt swaps, are in sight.

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“Budget Allocation Concerns: The 2025 government budget allocates only N900 billion, raising concerns about its adequacy to cover arrears and future payments.”

Furthermore, the group said that liquidity challenges are further worsened by the various policies introduced.

As a result of the policies, the association said “no one is under pressure to ensure GenCos invoices are fully settled”.

“The implication of this is that GenCos only get paid a portion of their invoices (9%, 11%) from whatever amount is left,” the association said.

The GenCos demanded immediate implementation of payment plans to settle all outstanding GenCos invoices.

“Reprioritization of payments under the waterfall arrangement to give full priority to a hundred percent payment of GenCos’ invoices as at when due. A clear financing plan to backstop the exposures in the NERC’s Supplementary Order to the MYTO and the DRO 2024,” the association said.

They also requested the provision of payment security backed by the World Bank and the African Development Bank (AfDB) to guarantee full payment to GenCos to enable them to meet their critical needs, ensuring adequate generation and expansion.

The GenCos urged the federal government to liberalise the market to create confidence and ensure the viability and creditworthiness of the power sector.

Also, the association demanded “full effectiveness of all market agreements, firm monitoring, and enforcement of the rules by the regulator on all market participants”.

In light of the severity of the issues, the GenCos requested that immediate action be taken to prevent national security challenges due to their failure to sustain Nigerians’ steady electricity generation.

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OPEC Cuts Global Oil Demand Forecast Over US Tariff Hike

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April 14, 2025

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On Monday, OPEC announced a slight reduction in its oil demand growth forecast, attributing the change to the effects of U.S. tariffs on the global economy.

In its monthly report, the Saudi-led organization now anticipates an increase in demand of 1.3 million barrels per day (bpd) for 2025, a decrease from the previously estimated 1.4 million bpd.

This “minor adjustment” was primarily influenced by data from the first quarter and the anticipated repercussions on oil demand stemming from the recently imposed U.S. tariffs.

OPEC projects that global oil demand will reach a total of 105.05 million bpd this year. Additionally, the organization has slightly revised its global economic growth forecast down to three percent.

The report noted, “While the global economy exhibited a consistent growth pattern at the start of the year, the short-term outlook is now faced with increased uncertainty due to the recent tariff-related developments.”

Last week, oil prices fell to a four-year low, dropping below $60 per barrel amidst concerns regarding the implications of President Donald Trump’s tariffs. However, prices saw a rebound on Monday, with Brent North Sea crude, the international benchmark, rising by 1.3% to $65.62 per barrel.

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