The National Bureau of Statistics (NBS) has released data revealing that Nigeria’s economy has experienced negative growth, falling below various projections. The Gross Domestic Product (GDP) for the year 2023 grew negatively, with an annual basis increase of 2.74 percent compared to 3.10 percent in 2022, according to the NBS.
Factors contributing to the economic downturn include what is described as former President Muhammadu Buhari’s abysmal management of the economy, rising inflation rates, disruptions to the supply chain caused by insecurity, and challenges following the removal of fuel subsidies by the present administration under President Bola Tinubu.
The full-year GDP growth is reported to be lower than the projections made by the World Bank and International Monetary Fund (IMF), both of which anticipated a decline from 3.3 percent in 2022 to 2.9 percent in 2023. The federal government’s projection of 3.5 percent growth during 2023 was also not realized, as the economy grew by 3.46 percent (year-on-year) in the fourth quarter of 2023.
The statistics bureau highlighted that the services sector played a significant role in the fourth quarter of 2023, contributing 56.55 percent to the aggregate GDP with a growth rate of 3.98 percent. The agriculture sector also saw growth, contributing to the positive performance. Additionally, the industry sector improved from a negative growth rate in the fourth quarter of 2022.
The economy has been classified into the oil and non-oil sectors, with the oil sector contributing 4.70 percent to the total real GDP in Q4 2023. The non-oil sector made up 95.30 percent, with the mining and quarrying sector experiencing growth of 8.04 percent (year-on-year) in the same quarter.
The report indicates that Nigeria faces economic challenges, and stakeholders are keenly observing developments to address the issues hindering growth.
