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FG Implements Zero VAT for Pharmaceutical Products

Federal Ministry of Health and Social Welfare said it has finalised the Executive Order Harmonized Implementation Framework that abolishes Value Added Tax (VAT) and...
HomeEconomyNigeria’s Economy Sustains Growth Momentum in Q2

Nigeria’s Economy Sustains Growth Momentum in Q2

Nigeria’s economy sustained positive growth momentum in the second quarter of this year, as the GDP increased 3.19% compared to 2.98% in the first quarter of the year, and 2.51% in the corresponding period of last year. This growth momentum is contained in the latest data released by the National Bureau of Statistics (NBS).

According to the GDP breakdown, the oil sector rose sharply by 10.15% y/y in Q2-24 (Q1-24: +5.70% y/y | Q2-23: -13.43% y/y) in line with the improvement in crude oil production.

Specifically, average crude oil production rose by 15.6% y/y to 1.41 mb/d in Q2-24, compared to the 1.22 mb/d in Q2-23, although this was lower than the 1.57 mb/d recorded in Q1-24. Thus, the oil sector contributed 5.70% to the total GDP (Q1-24: 6.38%) during the review period.

At the same time, the non-oil sector remained positive, growing by 2.80% y/y in Q2-24 (Q1-24: +2.80% y/y). Accordingly, the non-oil sector contributed 94.30% to the total GDP (vs 93.62% in Q1-24).

A breakdown of the growth on the basis of the three most significant components of the GDP shows that Agriculture grew stronger by 1.41% y/y (Q1-24: +0.18% y/y), Industries came in higher by 3.53% y/y (Q1-24: +2.19% y/y); while Services moderated to 3.79% y/y (Q1-24: +4.32% y/y).

In terms of contributions, Services, Agriculture, and Industries contributed 58.76%, 22.61% and 18.62% of overall output growth, respectively.