The Real Estate sector has emerged as Nigeria’s third-largest economic sector following the latest GDP rebasing by the National Bureau of Statistics (NBS), recording a staggering jump of over N25 trillion between the old and rebased figures for 2023.
According to the revised data, Real Estate’s contribution to GDP surged from N10.5 trillion in 2023 (pre-rebasing) to N30.7 trillion after the rebasing and further climbed to N41.3 trillion in 2024, positioning it just behind Trade and Crop Production.
Meanwhile, Trade overtook Crop Production to become Nigeria’s largest economic sector, with a rebased contribution of N68 trillion in 2024, up from N55.3 trillion in 2023. Crop Production, which previously led the rankings, followed closely with N61.9 trillion in 2024 after rebasing.
Overall, Nigeria’s Gross Domestic Product for 2024 was rebased to N372.8 trillion, a sharp rise from the N229.9 trillion earlier reported.
The rebasing reflects changes in price structure, sectoral classification, and broader inclusion of emerging segments of the economy.
Why the jump in Real Estate?
The upward revision reflects a more accurate estimation of property values, increased formalization in housing activities, better data capturing of real estate services (including rentals, brokerage, and land valuation), and rising urbanization.
This development suggests that the sector was grossly undervalued in previous GDP computations and now better reflects actual economic output.
The 2023 rebased data places Real Estate ahead of long-time economic drivers such as Telecommunications (N23 trillion), Construction (N13.8 trillion), and even Crude Petroleum & Natural Gas (N13.1 trillion) for the same year.
Service sectors gain ground
Aside from Real Estate, several service-driven sectors saw their rankings improve dramatically:
- Professional, Scientific & Technical Services jumped from N5.6 trillion to N8.9 trillion in 2023 and rose further to N10.9 trillion in 2024.
- Public Administration nearly tripled in value from N3.5 trillion in 2023 (old series) to N10 trillion in 2024 (revised).
- Livestock, typically part of the agriculture sector, saw its contribution rise to N24.8 trillion in 2024 from just N2.7 trillion previously reported in 2023.
These shifts suggest a growing recognition of previously underreported sectors, likely due to better data capture, methodology changes, and more granular breakdowns of economic activities.
Oil’s shrinking relative share
One of the most striking outcomes of the rebasing exercise is the diminished prominence of crude oil.
While still contributing N14.6 trillion in 2024, the sector now ranks 7th, behind Trade, Crop Production, Real Estate, Telecoms, Livestock, and Construction.
This reinforces Nigeria’s growing shift away from oil dependence, at least statistically, and highlights the relative rise of non-oil sectors in driving economic activity.
Newcomers and drop-offs
The rebased data also introduced new sectors that previously didn’t make the top 20. Notable entries include:
- Administrative and Support Services (N4.8 trillion in 2024)
- Human Health and Social Services (N5.6 trillion)
- Motion Pictures, Sound Recording, and Music Production, which now contributes over N2.1 trillion, marking a win for Nigeria’s creative economy.
On the flip side, sectors like Accommodation and Food Services dropped out of the top 20 in the 2024 rebased GDP, suggesting slower growth or underperformance relative to others.
What you should know
Back in January, NBS announced the rebasing of Nigeria’s GDP data, with 2019 selected as the new base year.
This decision, according to the NBS, was driven by the year’s status as a period of “relative economic stability” compared to other recent years, which were marked by significant economic shocks.
The latest GDP rebasing exercise offers a clearer picture of Nigeria’s economy, revealing that Real Estate, Trade, and Professional Services are playing far larger roles than previously recorded.
While oil remains significant, the numbers now affirm the economy’s growing diversification, a narrative policymakers and investors will find important as they allocate resources and develop growth strategies in the years ahead.
