Nigeria’s economy falters, as GDP growth falls to 2.74% — NBS

By Sodiq Adelakun

Nigeria’s economic landscape has shown a mix of resilience and challenges as the Gross Domestic Product (GDP) figures for 2023 have been released.

The nation’s economy expanded by 2.74 percent over the year, marking a slight slowdown from the 3.10 percent growth rate recorded in 2022.

This is the most modest pace of growth seen since the economic contraction of 2020, which was triggered by the global pandemic and saw a decline of –1.92 percent.

Despite the deceleration in annual terms, the fourth quarter of 2023 brought some positive news, with the economy growing by 3.46 percent compared to the same period in the previous year.

Although this is a marginal decrease from the 3.52 percent growth in the fourth quarter of 2022, it is an uptick from the 2.54 percent growth in the third quarter of 2023, indicating a stronger end to the year.

The services sector has emerged as the primary engine of growth in the final quarter, with an impressive 3.98 percent increase. It has also made a substantial contribution to the total GDP, accounting for 56.55 percent.

This sector’s performance underscores its pivotal role in driving Nigeria’s economic activity.Agriculture, a cornerstone of Nigeria’s economy, has also seen a slight improvement.

The sector’s growth edged up from 2.05 percent in the last quarter of the previous year to 2.10 percent in the corresponding quarter of 2023, reflecting a steady, albeit modest, upward trajectory. The industry sector, which had previously experienced a decline, has rebounded with a robust growth rate of 3.86 percent in the fourth quarter of 2023.

This marks a significant recovery from the -0.94 percent dip seen in the same period of 2022. The resurgence in this sector has been a significant contributor to Nigeria’s GDP, boosting the overall economic figures.

As the country moves forward, the performance of both the industry and services sectors has been particularly noteworthy, with increased contributions to the overall GDP in the last quarter of 2023 compared to their performance in the previous year’s quarter.

This suggests a shifting dynamic in Nigeria’s economic structure, with these sectors poised to play a more dominant role in the nation’s economic narrative.