Nigeria’s recent GDP rebasing has highlighted a significant shift in its economic structure. Real estate has surpassed oil, now standing as the third-largest contributor to the Nigerian economy, replacing crude oil’s historic dominance.
This change reflects a broader diversification within the country’s economy, with real estate now contributing a notable share alongside agriculture and the service sector.
Nigeria’s Economy Grows to N372.8 Trillion in 2024
The long-awaited rebased GDP for 2024 shows that Nigeria’s economy has expanded to a total value of N372.8 trillion ($145.3 billion).
This marks a remarkable 17.81% nominal growth compared to the previous year, positioning the country as one of Africa’s largest economies despite challenges such as inflation and cost of living crises.
However, the growth is not uniformly felt across the population, with many citizens still grappling with high inflation and unemployment rates.
Service and Industry Sectors Lead the Charge
The Nigerian economy has been propelled by strong performances across the services and industry sectors, contributing significantly to the GDP.
The service sector has grown by 4.33% year-on-year, with telecommunications and finance taking the lead. In particular, the finance and insurance sector witnessed a remarkable growth of 15.03%, driven by fintech innovations and wider financial inclusion efforts.
The Slowdown in Agriculture and Oil Sectors
Despite the broader economic growth, the agriculture sector saw only marginal improvement, up by just 0.07% in Q1 2025. Similarly, while the oil sector showed slight improvements in production, with an average of 1.62 million barrels per day, it continued to underperform, with its real GDP growth slowing to 1.87%.
The oil sector now accounts for a diminishing share of total GDP, signalling a shift toward other industries.
A Closer Look at the Informal Economy
The rebasing has revealed the growing role of Nigeria’s informal sector, which now contributes 42.5% to GDP, up from 41% previously. This sector includes various small-scale businesses and informal trade, highlighting the importance of grassroots economic activities that often go underreported in formal GDP data.
Real Estate and Telecoms: New Pillars of Nigeria’s Economy
The expanded role of real estate and telecommunications is reshaping Nigeria’s economic landscape. The real estate sector, growing by 4.61% in Q1 2025, is now a cornerstone of the economy, providing jobs, stimulating infrastructure development, and contributing to urban growth.
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Telecoms, particularly mobile networks and internet services, have also emerged as key drivers of economic transformation, supporting growth across various sectors.
Rebased GDP: A Step Toward Accurate Economic Planning
The rebasing has provided a more accurate reflection of Nigeria’s economic activities, incorporating new sectors like e-commerce, technology, and creative industries.
According to Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, this gives policymakers a clearer understanding of the economy’s size and structure.
However, despite these advancements, there is a consensus that this rebase should be used as a tool for better fiscal planning and social protection investments.
Implications for Ordinary Nigerians: Growth Without Immediate Relief
While the rebase showcases impressive economic growth, it has not alleviated the financial struggles of everyday Nigerians. Experts like Gbolade Idakolo point out that while GDP expansion is positive, it does not guarantee improvements in living standards due to persistent issues such as inflation, low tax revenue, and high unemployment rates.
Policymakers must focus on translating macroeconomic growth into tangible improvements in citizens’ quality of life.
The Road Ahead: Challenges and Opportunities
While the rebasing has provided a clearer economic picture, the real challenge lies in ensuring that the benefits of economic expansion reach the average Nigerian.
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Prof. Godwin Oyedokun from Lead City University stresses that the government must develop inclusive growth strategies, focusing on reducing poverty, improving infrastructure, and addressing the economic disparities that remain a stark reality for many citizens.
Nigeria’s recent GDP rebase offers a new lens through which to understand the nation’s economic potential.
With real estate overtaking oil as a major contributor, Nigeria’s economic structure is diversifying, opening the door for new industries to lead the charge.
However, for this growth to have a lasting impact, policymakers must ensure that the expansion leads to tangible improvements in the livelihoods of ordinary Nigerians, bridging the gap between macroeconomic growth and individual prosperity.
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.
