• The national accounts for Q2 ’24 from the National Bureau of Statistics (NBS) show that GDP grew by +3.19% y/y compared with the +2.98% y/y recorded in Q1 ’24. The deeper dive shows that the service sector grew by +3.8% y/y and accounted for 58.8% of total GDP in Q2 ’24.

• The oil economy continued its positive trend for the third consecutive quarter, as it grew by +10.2% y/y in Q2 ’24. Meanwhile, on q/q basis, it contracted by -10.5%. Based on data from the NURPC, average crude oil production in Q2 ’24 was 1.47mbpd compared with 1.54mbpd recorded in the previous quarter.

• The non-oil economy remained steady at +2.8% y/y in Q2 ’24. Key drivers within the non-oil economy include finance and insurance (28.8% y/y), telecoms (5.2% y/y), construction (3.2% y/y), agriculture (1.4% y/y), manufacturing (1.3% y/y), real estate (0.8% y/y), and trade (0.7% y/y). Combined, these sectors accounted for 78.8% of total GDP in Q2 ’24.

• Agriculture grew by +1.4% y/y compared with the +0.2% y/y recorded in Q1 ’24. Crop production remained the major driver of agriculture and accounted for 90% of agriculture GDP; it grew by +1.7% y/y. Agriculture contributed 22.6% y/y to total GDP in Q2 24.

• Telecommunications grew by +5.2% y/y vs +6.2% recorded in Q1 ’24 and accounted for 16.4% of total GDP in Q2 ‘24. The sector demonstrated resilience despite high inflationary pressure and the difficult interest rate environment in Q2 ’24.

• The manufacturing sector grew by +1.3% y/y compared with +1.5% y/y recorded in Q1 ‘24. Within the sector, the food and beverages segment grew by +2.3% y/y and accounted for 52.4% of total manufacturing GDP. Meanwhile, textile, apparel, and footwear segment contracted by 1.9% y/y. The cement segment posted growth of +1.7% y/y.

• The manufacturing sector grew by +1.3% y/y compared with +1.5% y/y recorded in Q1 ‘24. Within the sector, the food and beverages segment grew by +2.3% y/y and accounted for 52.4% of total manufacturing GDP. Meanwhile, textile, apparel, and footwear segment contracted by 1.9% y/y. The cement segment posted growth of +1.7% y/y.

• Trade grew by +0.7% y/y in Q2 ’24 vs +1.2% y/y recorded in the preceding quarter. Ideally, the depreciation of the Naira/US dollar should positively impact the balance of trade account and stimulate export growth while curbing import volumes.

• Finance and Insurance grew by +28.8% y/y in Q2 ’24 compared with 31.2% y/y recorded in Q1 ’24. Meanwhile, on a q/q basis it declined -3.5%. This decline could be partly associated with the restrictive stance of the monetary authorities.

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