The service, industry, and agriculture subsectors propelled Nigeria’s economy’s expansion to N372.8 trillion in 2024 ($145.3 billion) at the present exchange value of the naira.
Despite the economic growth in Africa’s most populous nation, Nigerians have continued to battle soaring costs of living, with headline and food inflation at 22.22 percent and 21.97 percent as of June 2025.
The National Bureau of Statistics released its long-awaited rebased Gross Domestic Product data for 2019, 2020, 2021, 2022, 2023, and 2024 concurrently.
At a nominal output level, Nigeria’s economy saw a modest growth rate in the last five years, starting from N205.09 trillion in 2019 to N372.82 trillion in 2024.
In 2024, the country saw a nominal growth of 17.81 percent. Interestingly, Nigeria’s growth has been at an increasing rate since 2020, except in 2022-3.6 percent, 13.72 percent, 12.65 percent, and 14.12 percent, in that order.
In real terms, the Nigerian economy grew by 3.04 percent and 3.38 percent in 2023 and 2024, respectively.
Also, the economy grew by 3.13 percent in real terms in the first quarter of the year. It was the slowest since Q1 2024. In the fourth quarter of last year, the GDP was up by 3.76 percent, while in the previous quarter (Q3 2024), the real growth was 3.86 percent, just as Q2 posted 3.48 percent.
DAILY POST reports that this is the second time the country’s GDP has been rebased since 2014, which aimed to reflect changes in economic structure.
Meanwhile, the rebased GDP did not impact Nigeria’s ranking in Africa, as it remained in fourth position behind South Africa, Egypt, and Algeria, with estimated GDPs of $410.34 billion, $347.34 billion, and $268.89 billion, respectively, according to the International Monetary Fund (IMF).
Also, Nigeria’s economic expansion has not impacted the livelihoods of ordinary citizens grappling with despair caused by rising costs of living and inflation.
DAILY POST, in separate interviews with experts on Monday, unveiled the key implications of the rebased Nigeria’s GDP.
On his part, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said the final action of the rebased GDP has presented a clearer picture of the actual size of the Nigerian economy.
According to him, the rebased GDP showed that real estate has displaced crude oil as the third-largest contributor to the Nigerian economy.
He added that the rebased GDP will improve the country’s ranking in the global and African economies.
“The rebased GDP and the expectations have been very high; however, the final action has not been as dramatic as many of us expected. The good thing is that we have a clear picture of the economy. We know that the economy is bigger than what we have been quoting it to be. It is not as big as some analysts had expected.
“We have seen some structural changes in the economy; for instance, we have seen a bigger role of real estate in the economy. It is now occupying the third position, displacing crude oil, which is quite significant.
“Telecoms have grown significantly. We have also seen an increase in the share of agriculture and industry. The economy is bigger than what it used to be, which will increase the global ranking in the global economy. Right now, I think we are number five or so. It should be close to 300 billion dollars or thereabouts. It is a good development.
“Before the rebasing, the agriculture sector was contributing 22.12 percent, and 26 percent post-rebasing.
“Industry, 27.7 percent now, 21.08 percent before. The service sector, 50.22 percent before rebasing; after, it is 53.09 percent. So you can see the shift in the structure of the economy. The truth is that the service sector is growing faster than the real sector of the economy, which is instructive for policy.
“The contribution of the informal sectors increased to 42.5 percent from 41 percent. So we have a clearer picture of the sectoral contribution to the economy,” he told DAILY POST.
Reacting, the Chief Executive Officer of SD & D Capital Management, Gbolade Idakolo, said the rebased GDP does not guarantee improvement in the living standards of Nigerians.
“The rebasing of Nigeria’s GDP, now N372.8 trillion, is expected to increase the size of the economy with significant impact on macroeconomic ratios.
“However, so many factors, like the tax-to-GDP ratio, which is very low, might be increased to match the GDP. These activities would definitely have a negative effect on ordinary Nigerians who are facing eroding income, high unemployment, high inflation, and other debilitating factors. The rebasing of the GDP does not guarantee improvement in the standard of living of Nigerians or have a real impact on what the citizens are presently suffering,” he said.
Also, a don at Lead City University in Ibadan, Prof. Godwin Oyedokun, said policymakers and the government must intentionally translate the benefits of economic expansion into inclusive growth strategies to make a real impact on the livelihoods of Nigerians.
“The recent rebasing of Nigeria’s Gross Domestic Product (GDP) to N372.8 trillion reflects an updated and more accurate measurement of the country’s economic activity. GDP rebasing is a normal statistical exercise used to capture changes in the structure of the economy, often by incorporating new sectors like technology, e-commerce, and the creative industries. The revised figure indicates that Nigeria’s economy is larger than previously estimated, suggesting greater diversification and growth in underreported areas.
“However, a higher GDP does not automatically translate into improved living conditions for the average Nigerian. Issues such as high inflation, unemployment, poor infrastructure, and insecurity continue to affect citizens’ day-to-day lives. While the rebased figure may enhance Nigeria’s creditworthiness, attract foreign investments, and support better policymaking, these benefits must be intentionally translated into inclusive growth strategies to make a real impact on livelihoods.
“Ultimately, the rebasing presents an opportunity for policymakers to use more accurate economic data to improve fiscal planning, expand social protections, and invest in human capital. To ensure the rebased economy is not just a statistical upgrade but a catalyst for real development, efforts must focus on making growth equitable and addressing structural challenges that hinder the prosperity of the majority of Nigerians,” he told DAILY POST.
