- Block all revenue leakages, FG charges RMAFC
Nigeria’s Gross Domestic Product grew by 3.84 per cent in real terms in the fourth quarter of 2024, reflecting an improvement from the 3.46 per cent recorded in the same period of 2023.
This also marked a slight increase from the previous quarter, which recorded an identical 3.46 per cent growth rate.
The latest GDP data released by the National Bureau of Statistics attributes the expansion to stronger performance in the services sector, which recorded a 5.37 per cent growth rate and accounted for 57.38 per cent of the country’s total GDP.
The report read, “Nigeria’s Gross Domestic Product grew by 3.84 per cent (year-on-year) in real terms in the fourth quarter of 2024.
“This growth rate is higher than the 3.46 per cent recorded in the fourth quarter of 2023 and the third quarter of 2024 growth rate (approximately 3.46 per cent).
“The performance of the GDP in the fourth quarter of 2024 was driven mainly by the Services sector, which recorded a growth of 5.37 per cent and contributed 57.38 per cent to the aggregate GDP.”
It was further learnt that the figures released for the GDP are not based on the rebased methodology.
Despite the overall economic growth, the agriculture sector recorded a slower expansion of 1.76 per cent, down from 2.10 per cent in the corresponding quarter of 2023.
The industry sector also experienced a downturn, growing by 2.00 per cent, lower than the 3.86 per cent posted in the previous year.
In nominal terms, aggregate GDP for the fourth quarter of 2024 stood at N78.37trn, marking an 18.91 per cent increase from N65.91trn recorded in the same quarter of 2023.
For the full year 2024, Nigeria’s economy grew by 3.40 per cent, an improvement from the 2.74 per cent recorded in 2023, driven mainly by the non-oil sector.
The oil sector’s contribution to GDP declined slightly, accounting for 4.60 per cent in the fourth quarter of 2024, compared to 4.70 per cent in the same period of 2023 and 5.57 per cent in the previous quarter.
Nigeria’s average daily crude oil production stood at 1.54 million barrels per day, a slight drop from 1.56mbpd recorded in the fourth quarter of 2023 but an improvement from 1.47mbpd in the third quarter of 2024.
The sector recorded a real GDP growth rate of 1.48 per cent, significantly lower than the 12.11 per cent recorded in Q4 2023 and the 5.17 per cent posted in Q3 2024.
However, on an annual basis, the oil sector reported a positive growth rate of 5.54 per cent, contrasting with the -2.22 per cent contraction recorded in 2023.
The non-oil sector, which continues to be the major driver of economic growth, expanded by 3.96 per cent in Q4 2024, outperforming the 3.07 per cent recorded in the same quarter of 2023 and the 3.37 per cent growth seen in the previous quarter.
The non-oil sector contributed 95.40 per cent to GDP, slightly above the 95.30 per cent reported in Q4 2023.
Key industries responsible for this growth include financial and insurance services, information and communication (notably telecommunications), agriculture (particularly crop production), trade, transportation and storage (especially road transport), and manufacturing.
The mining and quarrying sector, which includes crude petroleum, natural gas, and solid minerals, recorded a real GDP growth of 2.23 per cent, significantly lower than the 8.04 per cent recorded in Q4 2023.
Its contribution to GDP stood at 4.84 per cent, slightly down from 4.91 per cent in the same quarter of the previous year.
The agriculture sector, which remains critical for food security and employment, saw its real GDP growth slow to 1.76 per cent, compared to 2.10 per cent in Q4 2023.
Crop production remained dominant, accounting for 90.70 per cent of the sector’s contribution to GDP.
The manufacturing sector recorded a real GDP growth rate of 1.79 per cent in Q4 2024, up from 1.38 per cent in the previous quarter.
However, its share of GDP fell to 8.07 per cent, from 8.23 per cent in the corresponding quarter of 2023.
The construction sector grew by 2.95 per cent, slightly lower than the 3.70 per cent recorded in Q4 2023, contributing 3.44 per cent to GDP, compared to 3.47 per cent in the previous year.
The trade sector recorded a real GDP growth of 1.19 per cent, down from 1.40 per cent in Q4 2023 but an improvement from the 0.65 per cent posted in Q3 2024.
Trade accounted for 15.11 per cent of total economic output in the quarter.
The financial and insurance sector was a standout performer, recording a real GDP growth rate of 27.78 per cent in Q4 2024, slightly lower than the 29.77 per cent seen in the preceding quarter.
Its contribution to GDP increased to 6.10 per cent, from 4.95 per cent in Q4 2023.
The information and communication sector, largely driven by telecommunications, maintained its strong performance with real GDP growth of 5.90 per cent, slightly below the 6.32 per cent recorded in Q4 2023.
The sector accounted for 17.00 per cent of total GDP, up from 16.66 per cent in the previous year.
The transportation and storage sector saw a major turnaround, growing by 18.61 per cent in Q4 2024, in contrast to the -29.00 per cent contraction recorded in Q4 2023.
Its share of GDP stood at 1.26 per cent. Meanwhile, the electricity, gas, steam, and air conditioning supply sector contracted by -5.04 per cent in real terms, a sharp decline from the 6.17 per cent growth recorded in Q4 2023. The sector’s contribution to GDP remained at a modest 0.49 per cent.
Block all revenue leakages, FG charges RMAFC
Meanwhile, the Federal Government has charged the newly inaugurated Board of the Revenue Mobilisation, Allocation and Fiscal Commission to block all revenue leakages and ensure that defaulters are sanctioned.
Secretary to the Government of the Federation, Senator George Akume, who gave this charge on Tuesday in his keynote address at the inaugural meeting of the new board of the commission in Abuja, also urged it to fast-track the review of the Revenue Allocation Formula, noting that a new equitable formula is critical for national economic stability and development.
He said the government expects the commission to strengthen revenue monitoring and accountability and ensure that all revenue-generating agencies comply with collection and remittance laws.
He noted that the enormous responsibilities of the commission have placed it at the centre of Nigeria’s fiscal and economic transformation.
“Your work, therefore, directly impacts the financial stability of the Federal, State, and Local Governments,” he said.
The SGF said the economic realities before the country demand urgency, innovation, and resilience in revenue administration. Noting that the removal of fuel subsidies, exchange rate unification, and ongoing tax reforms are strategic moves to ensure fiscal stability, he added that these policies will only succeed if institutions like RMAFC rise to the challenge and execute their mandate effectively.
He said, “Let me reiterate that the Tinubu administration is committed to implementing bold fiscal reforms, a revenue diversification drive, and economic policies that will reposition Nigeria’s economy for sustainable growth.
“As the President has consistently emphasized, we must expand revenue sources, curb revenue leakages, and ensure that every naira due to the Federation Account is accounted for.”
He assured the commission of the government’s commitment to providing it with the necessary support to enable it to achieve its constitutional mandate.
“As we take steps to kick-start and commit you to this wonderful journey today, I urge you all to rise to the challenge and work towards a Nigeria that is economically self-reliant and fiscally stable,” he said, adding, “Your work here will shape the financial future of Nigeria. The task ahead is daunting, but with integrity, commitment, and patriotic dedication, we will succeed.”
Earlier in his welcome address, the Chairman of RMAFC, Mohammed Shehu, explained that RMAFC plays a pivotal role in the country’s economic governance by ensuring the fair and transparent allocation of revenue among the three tiers of government.
He said, “We are also actively involved in developing frameworks that enhance revenue generation, fiscal sustainability, and equitable distribution in line with national development priorities.”
He thanked the SGF for honouring the invitation to attend the meeting, adding that the commission looks forward to his support and guidance.
The board is made up of representatives from the 36 states of the federation and the FCT, Abuja.\
