Nigeria’s gross domestic product (GDP) in the first quarter (q1) of 2024 grew by 2.98%, higher than the 2.31% seen in the first quarter of 2023.
On a quarterly basis, GDP growth declined from 3.46% recorded in the fourth quarter (Q4) of 2023 when compared to the current rate of 2.98%.
According to the National Bureau of Statistics (NBS), GDP growth in Q1 was driven by the services sector which grew by 4.32% and contributed 58.04% to the aggregate GDP.
This report sheds light on the 10 fastest growing sectors of the economy in the quarter under review.
10. Road transport– Road transport is a critical part of the Nigerian economy as goods and persons move from one location to another every minute. It is preferred by the majority of the population owing to its relatively lower prices. The road transport sector grew by 5.58% in Q1 of 2024. This represents a rebound after a 33.76% decline in Q4 of 2023. In the financial year (FY) 2023, the sector declined by 35.91%.
9. Crude petroleum and natural gas– Crude oil is Nigeria’s major foreign exchange earner. Nigeria had 187 trillion cubic feet (tcf) of proven gas reserves as of 2017, ranking 9th in the world, according to Worldometer. This sector grew by 5.70% in the quarter under review, representing a decline from Q4 2023 where it saw a growth of 12.11%.
8. Transport services-Transport services are big business in Nigeria due to a huge population of over 200 million people. There was a 5.93% growth in this sector for the Q1 of 2024. This was an improvement from the 3.42% recorded in the previous quarter.
7. Telecommunications– Nigeria had 223 million phone users and 227 million mobile subscribers in early 2023, according to the National Communications Commission (NCC). This sector witnessed a growth of 6.23% during the quarter. However, this marks a marginal decline when compared to the 6.93% growth recorded in the last quarter of 2023.
6. Mining and Quarrying– Mining is growing rapidly in Nigeria. The growth in this sector in Q1 reached 6.30%, although it declined from the 8.04% growth recorded in the last three months of 2023.
5. Water Supply, Sewage and Waste Management– Growth in this sector declined from 7.44% recorded in Q4 2023 to 6.95% in the first quarter of 2024.
4. Insurance– The insurance industry in the financial services sector grew from 8.27% in the fourth quarter of 2023 to 8.34% in the period under review. The sector is still small but promising due to the size of the population and growing awareness about its activities in Nigeria.
3. Financial Institutions– This sector saw a whopping growth of 33.30% in the first quarter of 2024. However, growth increased slightly from 31.44% recorded in the preceding quarter. This is a big sector comprising banks, fintechs, among others.
2. Rail Transport and Pipelines– This sector saw a turnaround in growth from a contraction of –1.97% in full-year 2023 to 66.63% in the first three months of the year. Many are using rail today due to its speed and better security compared to the road.
1. Meta Ores– Like the rail transport sector before it, the metal ores sector saw a rebound from a negative growth of –17.39% in the last three months of 2023 to +114.35% in Q1 of 2024. This positions it as the fastest-growing sector in the Nigerian economy in the first quarter of 2024.
