Nigeria’s economy outperformed expectations in the third quarter of 2024, driven by a robust resurgence in the services sector. Gross domestic product (GDP) grew by an annual 3.46% during the three months ending in September, exceeding the previous quarter’s 3.19% growth and the 2.86% median forecast from a Bloomberg survey of economists.

The services sector, which contributed over half of the aggregate GDP, was the star performer, recording its fastest growth in nearly two years. This surge underscores the sector’s pivotal role in Nigeria’s economic landscape as it continues to diversify away from its traditionally dominant oil and gas industries.

The latest data, released on Monday by the National Bureau of Statistics (NBS), highlights a steady trajectory of economic recovery and resilience, despite global economic challenges. Analysts suggest the performance of the services sector—spanning telecommunications, financial services, trade, and other industries—could be critical in sustaining the country’s growth momentum in the coming quarters.

This robust growth also signals a growing confidence in Nigeria’s post-pandemic economic reforms and policies, which appear to be fostering stability and investment in non-oil sectors. As global demand and domestic consumption recover, the nation may find itself on a stronger footing heading into 2025.