Nigeria’s economy showed resilience in the third quarter of 2024, recording a GDP growth rate of 3.46% year-on-year, an improvement from 3.19% in Q2 2024 and significantly higher than the 2.54% recorded in Q3 2023.
This growth was driven primarily by the Services sector, which expanded by 5.19%, contributing over 53.58% to the aggregate GDP.
While the non-oil sector remained the cornerstone of growth, posting a 3.37% increase in real terms, the oil sector made modest gains, growing by 5.17% after contracting in Q3 2023.
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The following ranking highlights the top 10 fastest-growing sectors in Q3 2024, with comparisons to earlier quarters where applicable.
10. Arts, Entertainment, and Recreation (4.74%)
Q2 2024: 1.79%
Q1 2024: 4.44%
The Arts, Entertainment, and Recreation sector grew by 4.74% in Q3 2024, regaining momentum after a slowdown in Q2.
Its growth is linked to increased activities in Nigeria’s creative industry, as well as spending on leisure and cultural events. Compared to Q1, where it grew at 4.44%, the sector has shown resilience, driven by rising demand for entertainment content and performances.
This also explains why the sector has recorded a GDP growth rate every quarter since the first quarter of 2021. No
The Arts, Entertainment and Recreation sector makes up about 0.2% of Nigeria’s GDP as of the third quarter of the year.
9. Crude Petroleum and Natural Gas (5.17%)
Q2 2024: 10.15%
Q1 2024: 5.70%
The oil sector posted 5.17% growth in Q3, marking a slowdown compared to its impressive 10.15% performance in Q2 2024.
Nevertheless, the sector has maintained a steady pace relative to its 5.70% growth in Q1 2024.
Improved crude oil production, which averaged 1.47 million barrels per day (mbpd) in Q3, remains a key driver, but challenges in ramping up output continue to limit potential growth.
This sector contributes 5.57% to Nigeria’s GDP.
8. Water Transport (6.42%)
Q2 2024: 33.05%
Q1 2024: 4.34%
Water Transport slowed significantly in Q3 2024 to 6.42%, down from the exceptional 33.05% growth seen in Q2.
It is unclear what may have contributed to this sharp drop however our analysts suggest this could be due to a normalization of activity after the sharp boost in Q2.
However, the sector remains above its Q1 performance of 4.34%, reflecting sustained investments in shipping and logistics systems.
7. Telecommunications (6.78%)
Q2 2024: 5.17%
Q1 2024: 6.23%
The Telecommunications sector, a pillar of Nigeria’s digital economy, grew by 6.78% in Q3, up from 5.17% in Q2 and higher than 6.23% in Q1 2024.
The sector continues to benefit from rising internet penetration and mobile phone adoption, with increasing reliance on data services for business, education, and communication. This is despite the challenges it has faced this year with forex devaluation and rising cost of operations.
As one of the largest contributors to the non-oil GDP with about 13.9%, Telecommunications remains a critical driver of economic stability.
6. Water Supply, Sewerage, Waste Management, and Remediation (9.78%)
Q2 2024: 8.20%
Q1 2024: 6.95%
This sector expanded by 9.78% in Q3 2024, improving steadily from 8.20% in Q2 and 6.95% in Q1.
The growth reflects ongoing efforts to improve public infrastructure and services, particularly in water supply and sanitation.
This sector has recorded a positive GDP growth rate every quarter since the first quarter of 2020 when the global economy was shut down due to Covid-19.
5. Road Transport (17.92%)
Q2 2024: -15.88%
Q1 2024: 5.58%
Road Transport made a remarkable recovery in Q3, growing by 17.92%, reversing the sharp contraction of -15.88% in Q2 2024.
This bounce-back was driven by modest improvements in road networks, increased logistics activity, and the resumption of commercial transportation after disruptions earlier in the year due to higher transportation costs..
The growth rate also far exceeds the 5.58% recorded in Q1, showcasing the sector’s ability to rebound strongly.
4. Rail Transport and Pipelines (19.68%)
Q2 2024: 57.14%
Q1 2024: 66.63%
Rail Transport and Pipelines grew by 19.68% in Q3 2024, down from 57.14% in Q2 and 66.63% in Q1. While growth has slowed, the sector remains a vital part of Nigeria’s infrastructure expansion.
Ongoing investments in rail systems and pipeline networks are improving energy and goods transportation, boosting industrial productivity in key regions.
This sector is the smallest sector in the Nigerian economy but remains crucial to driving economic growth.
3. Insurance (19.81%)
Q2 2024: 13.30%
Q1 2024: 8.34%
The Insurance sector grew by 19.81% in Q3 2024, continuing its upward trend from 13.30% in Q2 and 8.34% in Q1.
The sector’s growth is driven by the rising adoption of insurance products, increased consumer awareness, and innovative digital platforms that make policies more accessible.
It reflects the maturity of Nigeria’s financial services landscape especially as more Nigerians become financially included.
2. Metal Ores (21.83%)
Q2 2024: 58.12%
Q1 2024: 114.35%
Although growth in the Metal Ores sector moderated to 21.83% in Q3, down from 58.12% in Q2 and 114.35% in Q1, it remains the fastest-growing sector in Q3.
Driven by heightened interest in mining activity and strong global demand for Nigeria’s metals, this sector continues to be a critical component of the country’s diversification strategy.
However, the deceleration highlights the need for consistent policies to maintain mining momentum.
The lack of consistent growth in the sector is also blamed on poor government policy and willingness to implement actions required to attract investments in the sector.
1. Financial Institutions (31.92%)
Q2 2024: 30.37%
Q1 2024: 33.3%
Financial Institutions grew by 31.92% in Q3 2024, maintaining its strong position as a key driver of non-oil growth.
Though slightly below its 33.3% in Q1, the sector has shown consistency across all quarters, reflecting the impact of digital banking, financial inclusion policies, and regulatory stability.
But more importantly, the sector’s growth is due to the central bank policy that has seen interest rates rise this year to over 25% for fixed-income security.
The central bank’s policy of maintaining high interest rates also helped commercial banks boost their gross earnings which was estimated topped N15 trillion in the first 9 months of the year compared to N7 trillion in the same period in 2023.
