Estimates indicate that Nigeria may miss the 3.3% GDP target for the year because the country’s economy grew more slowly in the first quarter of 2024. The GDP was estimated to have grown by 3.0% in the first quarter.
Nigeria is one of four nations on the continent that have submitted estimates thus far, and one of the three that did not meet the target, according to data provided by the Africa Export Import Bank (AFREXIM). According to data from AFREXIM, only Mozambique has so far grown at a rate of 5.0%, which is on pace.
According to the statistics, Tunisia, whose GDP growth is predicted to be 1.9%, has a Q1 estimate of 0.2%, while South Africa, whose growth is predicted to be 0.9%, has projected a -0.1.
According to data released by the National Bureau of Statistics (NBS), Nigeria’s GDP growth rate decreased to 2.98 percent in real terms during the first quarter of the year from 3.46 percent in the previous quarter.
The International Monetary Fund (IMF) raised its growth prediction for Nigeria’s economy to 3.3% in 2024 from 2.9% in the previous year last month, citing a recovery in the trade and services sectors.
The most populated country in Africa and the world’s largest oil producer, the IMF said, expressed concern about food security due to the 40% increase in food prices in March and the continued difficult economic prospects. The head of the IMF mission in Nigeria, Axel Schimmelpfenning, pointed out that “growing at 3.3% is just above the population dynamics, which is a big challenge for Nigeria.”
The goal of the reforms is to accelerate growth so that Nigerians can witness tangible improvements in their standard of living. We believe that much has occurred. We also need to acknowledge that the issues that accumulated over a long period of time were rather serious. We cannot anticipate that all issues will be handled quickly,” he continued.
According to the Fund’s prediction, fuel subsidies might account for as much as 3% of GDP this year because pump prices have not increased to match their dollar cost. Schimmelpfennig stated that policymakers are still dedicated to gradually eliminating gasoline subsidies over the course of the next one to two years.