The depreciation of the naira, low productivity, and stagflation—a confluence of high inflation, slow economic development, and high unemployment—have all contributed to Nigeria’s $310 billion GDP loss over the past ten years.
The economy, which was previously the biggest in Africa when Nigeria’s GDP was rebased in 2014, is now in fourth place, behind South Africa, Egypt and Algeria.
According to the International Monetary Fund, the economy of Africa’s most populous country shrank from $510 billion in 2014 to $199.7 billion in 2024.
CFG Advisory, a Lagos-based research and advisory firm, stated in its report titled, ‘From Reform Fatigue Quagmire to Sustainable Growth’:
According to Adeola Adenikinju, president of the Nigerian Economic Society in a BusinessDay report, Africa’s most populous country must diversify its economy and boost productivity in order to regain its status as an African superpower.
According to him, Nigeria’s GDP has increased in naira terms but decreased in dollar terms as a result of the depreciation of the exchange rate.
Although analysts say Nigeria is on track to rebase its economy, it might not become the largest in Africa.
According to Muda Yusuf, director and CEO of the Centre for the Promotion of Private Enterprise, exchange rate depreciation may be to blame for Nigeria’s $300 billion GDP loss since it has caused the country’s GDP to shrink in terms of its dollar worth.
He stated that more industries that have expanded over the past ten years will be included in the GDP rebasing, and that even in dollar terms, the country’s GDP is expected to rise significantly.
According to Yusuf, Nigeria’s economy must expand and overcome all barriers that are preventing it from being the largest in Africa once more, as well as any issues that are harming investment and productivity.
TimesNow.com.ng reported that experts have said that the inclusion of the activities of pension fund administrators in the rebased Gross Domestic Product will lead to more interest and scrutiny in the sector.
Experts have commended the National Bureau of Statistics (NBS) for incorporating the activities of pension fund administrators into the rebased Gross Domestic Product (GDP).
They noted that this will draw greater attention and scrutiny to the sector.
Source: TimesNow.com.ng
