Nigeria’s annual Gross Domestic Product (GDP) growth stood at 3.4% in 2024, from 2.74% in 2023, the National Bureau of Statistics (NBS) disclosed on Tuesday.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, welcomed the latest GDP figures, which showed that Nigeria’s economy grew at its fastest pace in three years.
Edun said it was a testament to the resilience of the Nigerian economy and the success of President Bola Tinubu’s Renewed Hope Agenda.
Equally, on Tuesday, the Senate said the proposed tax reform bills would serve as a critical step in achieving Tinubu’s vision of a $1 trillion economy.
The macroeconomic data released on Tuesday by NBS showed that GDP grew by 3.84 per cent, year-on-year, in real terms in the fourth quarter of last year (Q4 2024). The performance represented 0.38 per cent increase compared to 3.46 per cent recorded in Q4 2023.
Similarly, GDP indicated an increase of 0.38 per cent compared to a 3.46 per cent growth rate in the preceding quarter (Q3 2024).
NBS, however, clarified that the figures were based on the old method of computation rather than the proposed rebased GDP.
According to the Nigerian Gross Domestic Product Report, Q4 2024 released on Tuesday, the performance reflected an economic improvement compared to the preceding quarter, with the services sector remaining the major driver of the economy.
The services sector contributed 57.38 per cent to the aggregate GDP and grew by 5.37 per cent in the review period.
In real terms, economic activities improved to N22.61 trillion in Q4 compared to N20.12 trillion in Q3 2024 and N21.77 trillion in Q4 2023.
In nominal terms (current price), aggregate GDP stood at N78.37 trillion in Q4, indicating a year-on-year nominal growth rate of 18.91 per cent compared to N71.13 trillion in the preceding quarter, and N65.91 trillion in Q4 2023.
The economy was driven by the non-oil sector, which contributed 95.40 per cent to growth in Q4, compared to 94.43 per cent in the preceding quarter and 95.30 per cent in Q4 2023.
The services sector’s contribution led the non-oil segment with 57.38 per cent, followed by agriculture, which contributed 25.59 per cent, and industry 17.03 per cent.
In total, the non-oil sector contributed 94.49 per cent to GDP in 2024, compared to 94.60 per cent in 2023.
On the other hand, the oil sector contributed 4.60 per cent to real GDP in Q4, down from 5.57 per cent in the preceding quarter and 4.70 percent in Q4 2023.
In Q4, the country recorded an average daily oil production of 1.54 million barrels per day (mbpd), higher than 1.47 mbpd in Q3 2024, and lower than 1.56 mbpdrecorded in Q4 2023.
On an annual basis, the oil sector contributed 5.51 per cent in 2024 compared to 5.40 per cent in 2023.
Agriculture contributed 22.02 per cent to nominal GDP in the review period compared to 25.01 per cent in the preceding quarter and 24.65 per cent in Q4 2023. Overall, the sector contributed 20.97 per cent to the aggregate GDP in 2024.
The manufacturing sector contributed 8.07 per cent to real GDP, lower than 8.21 per cent in Q3 and 8.23 per cent in Q4 2023.
In total, the sector contributed 8.64 per cent to the economy in 2024, lower than 8.81 per cent in 2023.
Similarly, in real terms, trade’s contribution to GDP in Q4 was 15.11 per cent, compared to 14.78 per cent in Q3 and 15.50 per cent in the previous year. The sector contributed 15.46 per cent in 2024, compared to 15.83 per cent in 2023.
Moreover, finance and insurance contributed 6.10 per cent to GDP in Q4 compared to 5.51 per cent in the preceding quarter and 4.95 per cent in Q4 2023. In total, the sector contributed 6.22 per cent to GDP in 2024, compared to 4.97 per cent in 2023.
Edun welcomed the latest GDP figures that showed Nigeria’s economy grew at its fastest pace in three years.
Commenting on the development, Edun stated, “We are pleased to see the continued growth momentum, both from a quarterly and annual standpoint.
“It is a true testament to the resilience of the Nigerian economy and the success of President Bola Tinubu’s Renewed Hope Agenda. The expansion of the services sector and our ongoing efforts to strengthen food security through agricultural investments are yielding positive results.
“Efforts to ensure that economic growth translates into improved livelihoods for all Nigerians continue through initiatives, such as the direct benefit transfers scheme.”
Centre for the Promotion of Private Enterprise (CPPE) said the Q4 2024 GDP growth of 3.84 per cent was a reflection of both the gradual recovery of the economy and the resilience of Nigerian entrepreneurs.
Commenting on the GDP, Chief Executive Officer of CPPE, Dr. Muda Yusuf, said private investors had continued to forge ahead, despite the daunting macroeconomic and structural headwinds.
Yusuf, however, said that it was worthy of note that the macroeconomic challenges started to ease in the second half of 2024.
He also identified the relative stability of the naira exchange rate, marginal deceleration of inflation, decline in energy prices as positive as investors’ confidence.
Yusuf said, “One striking outcome of the Q4 GDP report was the recovery of the petroleum refining sector from decades of recession to a positive GDP growth of an impressive 9.6 per cent.
“This was one of the best sectoral performance among the strategic sectors of the economy.
“This, of course, could be attributed to the commencement of refining operations by Dangote refinery and the NNPC Refineries.”
The Senate said yesterday that the proposed tax reform bills will be a critical step to achieving Tinubu’s vision of a $1 trillion economy.
Chairman, Senate Committee on Finance, Sani Musa, made the assertion while addressing journalists in Abuja.
Musa said the reforms were pivotal to strengthening Nigeria’s economic framework, disclosing that the committee would embark on a three-day retreat to review stakeholders’ submissions.
He said, “You were all present at the hall there and you saw how the proceedings went and I can say everything was going seamlessly and smoothly because everyone that was in attendance that wanted to speak was allowed to speak, and we have seen a lot of people that spoke in alignment with what Mr. President has presented to the National Assembly.
“Also, a few of them that have some divergent opinions have also presented their cases, and we are going to consider everyone that was there. So, it’s not going to be a problem. We are going to give this country a legislation that is workable.”
On when the bills would be passed, Musa said, “We are going to work assiduously and we are going to consider every submission, every memorandum that has been given. The verbatim presentation that people have done, we have it on record.
“We are going to review everything. After this today, we are going to go for a three-day retreat and during the retreat, we are going to consult with experts.
“We are consulting also with the Office of the Attorney General of the Federation so that we see how we can present a law or an Act that is workable, that would not conflict with the Constitution of the Federal Republic of Nigeria.”
He added, “We are taking the advice of everyone that had made presentation. We are going to consider everything on its merit.
“We are not particularly looking at which organisation or which entity presents, but what is going to be acceptable to all Nigerians, what is going to be acceptable to all regions of this country because what we are trying to do is to present a law that is workable.”
The senate finance committee chairman also said, “When you look at advanced economies, Mr. President has said that he wants to see Nigeria having a $1trillion economy, and this is the beginning of it. For us to do it, we must do it in a way that is not only during the time of Mr. President.
“Mr. President is only going to stay for likely eight years. And after eight years, there will be another government.”
Chairman of the Senate Committee on Sports, Abdul Ningi, said the bills had assumed “national dimension”.
Ningi, who had earlier opposed the bills, said the intervention of the state governors had made it possible for the senate to organise the ongoing public hearing to enable critical stakeholders to ventilate their minds and make their inputs.
Ningi said his reservations, when the bills were submitted, were based on the fact that the necessary consultations had not been done.
He said the bills had now received a national consensus following the intervention of the 36 state governors.
Executive Chairman of Federal Inland Revenue Service (FIRS), Zacch Adedeji, thanked Nigerians for embracing the planned reforms.
The FIRS boss made the remarks at the second day of the public hearing yesterday.
Manufacturers Association of Nigeria (MAN) stated that sales of goods manufactured in Free Trade Zones (FTZs) into the customs territory (Nigeria domestic market) were not among the approved activities for the FTZs in Nigeria.
MAN also said goods made in the FTZs were not entitled to any tax exemptions when sold into the customs territory, contrary to misconceptions in some quarters.
In a statement, titled, “MAN Backs Proposed Reform of Free Trade Zone Operations in Nigeria,” Director General of MAN, Mr. Segun Ajayi-Kadir, said it was clear from the enabling laws and in the third Schedule to the NEPZA Act that the approved activity for firms in the FTZs was stated as “manufacturing of goods for export”, while other activities related to international services, trans-shipment and services within the zones.
Ajayi-Kadir added, “The concern of my members and the contention here are obviously pertaining to tax incentives.
“In specific terms, Section 8 on exemption from taxes only applies to the approved enterprises operating within a zone.
“They are exempted from all federal, state and local government’s taxes, levies and rates.
“Sale to the customs territory is neither an approved activity nor is it within the zone.”
He pointed out that Section 18 permitted the sale of goods and services to the customs territory, but this did not confer tax exemption on the sales, but rather a regulatory matter regarding what was permissible.
He stated, “Over time, the provisions of Sections 8 and 18 have been misinterpreted as not only permitting the sale into the customs territory but also as tax exemption.
“So again, I say this is where the concern of my members and the contention lies: this position is not consistent with the law and it undermines tax-paying entities operating within the customs territory and producing similar goods and services.
“Where does the tax exemption enjoyed by the companies operating within the zones leave my more than 2,500 members who operate outside the zone, in terms of level playing field, competitiveness, fairness and equity?
‘They find themselves in a disadvantage position and are rendered less competitive.”
Ajayi-Kadir expressed optimism that the tax reform bill before the National Assembly would actually come to the rescue of the members of MAN.
According to him, “The bill seeks to bring clarity and equity by stating that sales to the customs territory are taxable, not just for import duties and VAT, but also CIT purposes.
“That is to say that all sellers in the customs territory should be subject to the same tax obligations.
“Subsequently, I don’t think the relevant provisions of the tax reform bill amount to a reversal of the incentives, not at all.
“It is actually a clarification to align with the intent and letters of the enabling laws. This is in line with global best practice for free zones.
“In fact, Nigeria will continue to be more generous even after the proposed amendments. An example that is not farfetched is the situation in nearby Ghana.
“Ghana only allows up to 30 per cent sales into the customs territory subject to payment of duties and taxes, including CIT (Company Income Tax) whereas we (Nigeria) allow 100 per cent sales.”
The MAN director-general said exports by a company operating in the FTZs were tax-free only for 10 years after which up to 8.0 per cent CIT will apply, but Nigeria offered indefinite tax exemption on exports.
Akume: FG Committed to Bold Fiscal Reforms to Plug Leakages, Reposition Economy
Secretary to the Government of the Federation (SGF), Senator George Akume, yesterday, said the President Bola Tinubu administration remained committed to implementing bold fiscal reforms, revenue diversification drive, and economic policies that will reposition the economy for sustainable growth.
Akume said the president had consistently emphasised the need to expand revenue sources, curb leakages, and ensure that every Naira due to the federation account was accounted for.
The SGF spoke at the opening of the inaugural plenary of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) board in Abuja.
He stated that the removal of fuel subsidies, exchange rate unification, and ongoing tax reforms were strategic moves to ensure fiscal stability.
Akume urged the commission to rise to the challenge and work towards a Nigeria that was economically self-reliant and fiscally stable.
He said RMAFC, more than any other ministry, department, or agency of government, remained a “platform where, at the end of your service, new friendships would have been fostered, enduring relationships manifested, and a renewed commitment to tolerance, inclusion, and unity created, which eventually hatches a country that is stronger”.
Akume added, “The economic realities before us demand urgency, innovation, and resilience in revenue administration.
“However, these policies will only succeed if institutions like RMAFC rise to the challenge and execute their mandates effectively.
“I, therefore, wish to state categorically that governments expect key deliverables from the commission.”
He said the commission must strengthen revenue monitoring and accountability, and ensure that all revenue-generating agencies complied with collection and remittance laws.
According to him, RMAFC must plug leakages as well as sanction defaulters.
The SGF further assured that the federal government remained fully committed to providing the necessary support for the commission to achieve its constitutional mandate.
He said Tinubu had consistently emphasised the need for institutional independence, accountability, and operational efficiency.
Among other things, he said the commission must enhance non-oil revenue mobilisation, prioritise revenue generation from solid minerals, taxation, and other non-oil sectors to reduce dependence on crude oil earnings.
Akume also tasked the commission to fast-track the review of the revenue allocation formula, adding that the existing formula has not been reviewed in over two decades.
“A new equitable formula is critical for national economic stability and development,” he said.
Akume explained, “Your work here will shape the financial future of Nigeria. The task ahead is daunting, but with integrity, commitment, and patriotic dedication, we will succeed.
“The nation expects results, and I am confident that this group of dedicated citizens will fulfill their responsibilities with diligence and excellence.”
Chairman of RMAFC, Dr. Muhammed Shehu, said as a constitutional body, the commission played a pivotal role in the country’s economic governance by ensuring the fair and transparent allocation of revenue among the three tiers of government.
Shehu said, “We are also actively engaged in developing frameworks that enhance revenue generation, fiscal sustainability, and equitable distribution, in line with national development priorities.
“We recognise the critical role of the office of the SGF in coordinating government policies, and we look forward to your guidance and support in ensuring that RMAFC effectively discharges its constitutional responsibilities.”
Shehu expressed confidence that the engagement will further strengthen the synergy between RMAFC and the office of the SGF in pursuit of their collective goal of national development.”
James Emejo, Sunday Aborisade and Dike Onwuamaeze
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