Nigeria’s GDP Declines in First Quarter of 2024 as Economic Hardship Deepens

Nigeria’s Gross Domestic Product (GDP) dipped in the first quarter of 2024, the National Bureau of Statistics (NBS) disclosed this in its latest report released on Friday, May 24.

The GDP declined to 2.98 percent, representing a modest increase from 2.31 recorded in the same period in 2023, but a decrease from the 3.46 percent growth observed in the fourth quarter of 2023.

“Nigeria’s Gross Domestic Product (GDP) grew by 2.98 per cent (year-on-year) in real terms in the first quarter of 2024. This growth rate is higher than the 2.31% recorded in the first quarter of 2023 and lower than the fourth quarter of 2023 growth of 3.46 per cent,” the report said.

According to NBS, this decline in growth rate underscores the ongoing economic challenges under President Bola Tinubu’s leadership.

The report highlights a mixed performance across various sectors, with the services sector emerging as the primary driver of Nigeria’s GDP, boasting a growth of 4.32 percent and contributing 58.04 percent to the total GDP.

The agriculture sector saw a marginal increase, growing by 0.18 percent, a slight improvement from the negative growth recorded in 2023.

The industrial sector also experienced an uptick, recording a 2.19 percent growth rate, which marks a significant recovery from its earlier performance.

Despite these gains in some sectors, the overall economic mood has been dampened by a sharp increase in the inflation rate, which escalated to 33.69 percent in April 2024.

This inflation spike is placing additional pressure on households and businesses, further complicating the economic landscape.

The NBS added: “The average retail price for refilling a 5kg Cylinder of LPG declined by 1.06% on a month-on-month basis from N6,591.62 in March 2024 to N6,521.58 in April 2024. On a year-on-year basis, this increased by 40.48% from N4,642.27 in April 2023.”

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