In the first quarter (Q1) of 2024, Nigeria’s gross domestic product (GDP) increased by 2.98%, up from 2.31% in Q1 2023. However, this slightly decreased from the 3.46% growth in the fourth quarter (Q4) of 2023. According to the National Bureau of Statistics (NBS), the services sector was the main driver of GDP growth, expanding by 4.32% and contributing 58.04% to the total GDP.
Here are the 10 fastest-growing sectors in Nigeria’s economy for Q1 2024:
10. Road Transport
Road transport plays a vital role in Nigeria, facilitating the movement of goods and people. It grew by 5.58% in Q1 2024, rebounding from a 33.76% decline in Q4 2023. In the financial year 2023, the sector saw a decrease of 35.91%.
9. Crude Petroleum and Natural Gas
As Nigeria’s major foreign exchange earner, the crude petroleum and natural gas sector grew by 5.70% in Q1 2024, a decline from the 12.11% growth in Q4 2023. Nigeria has 187 trillion cubic feet of proven gas reserves, ranking 9th globally.
8. Transport Services
Transport services expanded by 5.93% in Q1 2024, up from 3.42% in the previous quarter. With a population exceeding 200 million, this sector is crucial for the country’s economy.
7. Telecommunications
With 223 million phone users and 227 million mobile subscribers in early 2023, the telecommunications sector grew by 6.23% in Q1 2024. This marked a slight decline from the 6.93% growth in Q4 2023.
6. Mining and Quarrying
The mining sector experienced a growth of 6.30% in Q1 2024, down from the 8.04% recorded in Q4 2023. This sector is expanding rapidly in Nigeria.
5. Water Supply, Sewage, and Waste Management
This sector saw growth decline to 6.95% in Q1 2024 from 7.44% in Q4 2023.
4. Insurance
The insurance sector in financial services grew to 8.34% in Q1 2024, up from 8.27% in Q4 2023. While still small, this sector has significant potential due to the large population and increasing awareness.
3. Financial Institutions
Financial institutions experienced a massive growth of 33.30% in Q1 2024, slightly higher than the 31.44% growth in Q4 2023. This sector includes banks and fintech companies.
2. Rail Transport and Pipelines
This sector rebounded dramatically, growing by 66.63% in Q1 2024, following a contraction of -1.97% in 2023. Many Nigerians prefer rail transport to road transport for its speed and security.
1. Metal Ores
The metal ores sector saw the most significant growth, soaring by 114.35% in Q1 2024 after a negative growth of -17.39% in Q4 2023. This made it the fastest-growing sector in Nigeria’s economy in the first quarter of 2024.
