The latest data from the National Bureau of Statistics (NBS) reports that Nigeria’s Gross Domestic Product (GDP) grew by 3.40% in 2024, marking an increase from the 2.74% growth recorded in 2023—a positive difference of 0.66%.
Looking ahead, the Medium-Term Macroeconomic Framework (MTEF) for 2025-2027 projects a GDP growth rate of 4.6% in 2025.
The major driver of this growth is the non-oil sector, which expanded by 3.27% in 2024 compared to 3.04% in 2023.
This growth was supported by the continued expansion of the year’s fastest-growing sectors.
More specifically, the services sector has been the major driver of growth, with key sectors such as telecoms and financial services leading the fray in size and growth.
However, a cursory review of the data also shows several smaller sectors recording astronomical growth. This suggests these sectors are experiencing a growth spurt in revenue and volumes, making them attractive for investments.
Below are the 10 fastest-growing sectors in Nigeria’s economy for 2024, ranked based on their growth rates.
10. Arts, Entertainment, and Recreation – 3.73%
- 2023: 4.28%
- 2024: Q1 – 4.28%, Q2 – 1.79%, Q3 – 4.74%, Q4 – 3.59%
The Arts, Entertainment, and Recreation sector witnessed a slight decline in 2024, growing at 3.73%, down from 4.28% in 2023. However, it showed signs of recovery in Q3, climbing from 1.79%.
The sector experienced fluctuating growth throughout the year, with Q1 at 4.44%, a sharp decline to 1.79% in Q2, followed by a recovery to 4.74% in Q3 before easing to 3.58% in Q4.
Factors such as changing consumer spending habits, increased competition, and economic uncertainty contributed to the sector’s slower growth. The sector accounts for 0.23% of Nigeria’s GDP.
9. Crude Petroleum and Natural Gas – 5.54%
- 2023: -2.22%
- 2024: Q1 – 5.70%, Q2 – 10.15%, Q3 – 5.17%, Q4 – 1.48%
After experiencing negative growth of 2.22% in 2023, the Crude Petroleum and Natural Gas sector made a strong comeback in 2024 with a 5.54% expansion. The sector’s Q4 growth of 1.48% highlights steady but moderate momentum.
The comeback is strongly supported by increased crude oil production, rising from 1.44 mbpd in 2023 to 1.5 mbpd in 2024, and stable international oil prices, averaging between $78–$80 per barrel.
8. Telecommunications & Information Services – 6.25%
- 2023: 8.90%
- 2024: Q1 – 6.23%, Q2 – 5.17%, Q3 – 6.78%, Q4 – 6.81%
The Telecommunications sector, a key driver of Nigeria’s digital economy, saw its growth slow to 6.25% in 2024, down from 8.90% in 2023. Telecommunications contribute 14.78% to Nigeria’s non-oil GDP, making it a key economic pillar.
Despite challenges such as foreign exchange devaluation and rising operational costs, the sector remained resilient, supported by increased mobile adoption and internet penetration. The Nigerian Communications Commission’s (NCC) approval of a 50% tariff increase for mobile network operators is expected to boost revenue in 2025.
7. Water Supply, Sewerage, Waste Management, and Remediation – 8.40%
- 2023: 12.65%
- 2024: Q1 – 6.95%, Q2 – 8.20%, Q3 – 9.78%, Q4 – 8.95%
This sector saw a slow growth compared to 2023. Nonetheless, it grew to 8.40% in 2024 compared to 12.65% in the previous year. Quarterly growth fluctuated, peaking at 9.78% in Q3 before falling to 8.95% in Q4.
Though the sector contributes only 0.26% to the GDP, it remains essential for environmental sustainability and public health. The sector is driven by urbanization, increasing demand for waste management solutions and government investments in clean water supply and sanitation.
6. Road Transport – 8.89%
- 2023: -35.91%
- 2024: Q1 – 5.58%, Q2 – (-15.88%), Q3 – 17.92%, Q4 –22.98%
The sector rebounded from a severe contraction in 2023, supported by increased investment in road infrastructure and maintenance and also by improved commercial transport activity following earlier disruptions due to high fuel costs.
5. Water Transport – 11.58%
- 2023: 8.38%
- 2024: Q1 – 4.34%, Q2 – 33.05%, Q3 – 6.42%, Q4 – 7.02%
The Water Transport sector saw an impressive turnaround in 2024, growing by 11.58%, up from -8.38% in 2023. This growth was fueled by improvements in logistics, resumption of commercial transport services, and modest enhancements in road networks.
4. Insurance – 14.42%
- 2023: 4.82%
- 2024: Q1 – 8.34%, Q2 – 13.30%, Q3 – 19.81%, Q4 –16.95%
The Insurance sector saw robust expansion in 2024, recording a 14.42% growth rate, up from 4.82% in 2023. Although insurance contributes just 0.44% to the GDP, it plays a crucial role in Nigeria’s financial ecosystem.
The insurance sector saw strong growth due to:
- Higher adoption of insurance products and rising consumer awareness.
- Digital transformation in the industry, improving accessibility and efficiency.
- The pension industry grew by ₦4.16 trillion in 2024, with registration increasing by 3.84%.
3. Financial Institutions – 30.89%
- 2023: 28.86%
- 2024: Q1 – 33.30%, Q2 – 30.37%, Q3 – 31.92%, Q4 –28.47%
The Financial Institutions sector remained one of the fastest-growing industries, expanding by 30.89% in 2024.
The growth was driven by high interest rates (over 25%), digital banking expansion, and financial inclusion policies.
2. Rail Transport and Pipelines – 44.14%
- 2023: -1.97%
- 2 024: Q1 – 66.63%, Q2 – 57.14%, Q3 – 19.68%, Q4 – 43.16%
The Rail Transport and Pipelines sector recorded 44.14% growth in 2024, reversing the -1.97% contraction of the previous year.
Investment in rail infrastructure and energy transportation networks helped boost industrial productivity, making the sector a key contributor to infrastructure expansion.
1. Metal Ores – 75.23%
- 2023: 50.32%
- 2024: Q1 – 114.53%, Q2 – 58.12%, Q3 – 21.83%, Q4 – 36.15%
The Metal Ores sector emerged as the fastest-growing sector in Nigeria’s economy, recording a 75.23% expansion, up from 50.32% in 2023.
This growth was fueled by rising global demand for metals and increased mining activities. However, policy inconsistencies and weak government support have slowed sectoral momentum, leading to a Q4 slowdown to 36.15%.
Sustaining this growth will require stronger policy frameworks and investment incentives to attract long-term capital.
