By Anastasia John E
Nigeria’s economy expanded by 3.84% in the fourth quarter of 2024, reaching N22.61 trillion, the Central Bank of Nigeria (CBN) has reported. The growth was largely propelled by the non-oil sector, with finance and insurance playing a key role.
The CBN’s Q4 2024 Economic Report reveals that most sectors experienced growth, but the electricity, gas, steam, and air conditioning subsector contracted by 5.05%.
This decline was attributed to increased tariffs, grid maintenance, and a shift towards alternative energy sources.
The oil sector’s growth slowed to 1.48%, impacted by a drop in the price of Bonny Light crude, although increased production offered some offset. In contrast, the non-oil sector grew at a faster rate of 3.96%, contributing significantly to the overall economic performance. Strong performances were noted in financial and insurance, information and communication, and transportation and storage.
Looking ahead, the CBN anticipates continued economic growth in 2025, but cautions about potential headwinds from fluctuating global oil prices and inflationary pressures. The report highlights the ongoing challenges within the energy sector as a key area needing attention for sustained economic progress.
