Non-Oil sector’s 3.96% growth bolsters Nigeria’s economic stability
BY TUNDE OPALANA
Nigeria’s non-oil sector has continued to serve as the backbone of the economy, recording a 3.96 per cent growth in Q4 2024—its strongest performance in recent quarters—offering a vital buffer against oil revenue fluctuations.
Experts have lauded this surge, noting that it underscores the country’s gradual shift towards a more diversified economic structure. According to the National Bureau of Statistics (NBS), while the oil sector slowed to 1.48 per cent from 5.17 per cent in Q3 due to production setbacks and price instability, the non-oil sector remained resilient.
Economic analysts highlighted that the upcoming GDP rebasing in 2025 could provide a clearer picture of Nigeria’s true economic size, capturing high-growth sectors like telecommunications, entertainment, and fintech. The last rebasing in 2014 led to a significant increase in Nigeria’s GDP and revealed previously underrepresented industries.
Comercio Partner, in its report A Strong Finish, but Challenges Linger, emphasised that while the non-oil sector is proving to be Nigeria’s stabiliser, sustaining this growth requires targeted improvements in infrastructure, security, and policy consistency.
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Despite the strong GDP figures, the firm noted that Nigerians continue to grapple with inflation, currency depreciation, and high borrowing costs, creating a gap between statistical growth and everyday realities.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), acknowledged the resilience of Nigerian entrepreneurs in driving non-oil growth despite macroeconomic challenges. He stressed the need for consistent economic policies, investments in agriculture and manufacturing, and improvements in trade supply chains to ensure long-term stability.
As Nigeria seeks to reduce its dependence on oil, experts argue that strengthening the non-oil sector is no longer an option but a necessity for shielding the economy from external shocks and global oil price volatility.
