Despite extensive fiscal and monetary interventions by both past and present administrations at the central and sub-national levels, Nigeria’s economy has faltered below anticipated levels, experiencing negative growth,leadership reports.
The National Bureau of Statistics (NBS) recently released data revealing a negative Gross Domestic Product (GDP) growth rate for 2023, in contrast to previous projections. According to the NBS, the GDP grew by 2.74 percent in 2023, down from 3.10 percent in 2022.
The decline in economic performance has been attributed to various factors, including the inadequate management of the economy during the tenure of former President Muhammadu Buhari, escalating inflation rates, disruptions to the supply chain exacerbated by insecurity, and widespread hardship following the removal of fuel subsidies by the current administration under President Bola Tinubu, who assumed office on May 29.
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These economic challenges have resulted in Nigeria’s GDP growth falling below projections made by the World Bank, the International Monetary Fund (IMF), and the federal government itself. While the IMF and World Bank forecasted a decline in economic growth from 3.3 percent in 2022 to 2.9 percent in 2023, the federal government had anticipated a growth rate of 3.5 percent for 2023.
However, the actual GDP growth for the fourth quarter of 2023 was recorded at 3.46 percent, a slight improvement from previous quarters but still below expectations. The growth was primarily driven by the services sector, which contributed 56.55 percent to the GDP, followed by the agriculture and industry sectors.
In terms of sectoral performance, the oil sector experienced a significant year-on-year growth of 12.11 percent in the fourth quarter of 2023, while the non-oil sector contributed 95.30 percent to the GDP. The mining and quarrying sector, crucial to Nigeria’s economic output, also saw growth, albeit with some fluctuations.
Despite these challenges, efforts are ongoing to address the underlying issues and revitalize the economy to ensure sustainable growth in the future.
