“GDP will increase to 3.5% in 2024”- NESG

‍The Nigerian Economic Summit Group has said that it is anticipating a significant boost in the country’s Gross Domestic Product (GDP). NESG projected that in 2024, there would be a growth from 2.54% to 3.50%.

This optimism stems from expected reforms and increased oil production, which could bolster government revenues and drive the GDP’s growth.

In the launch of its Macroeconomic Outlook on Wednesday, NESG categorised sectors into growth drivers, ‘growth stagnators’, and ‘growth draggers’.

Key growth drivers included the financial, ICT, and trade sectors that are making substantial contributions to the GDP. Conversely, agriculture, real estate, construction, and manufacturing were seen as growth stagnators due to subdued growth, while transport and oil and gas were growth draggers, negatively impacting overall growth.

The NESG report indicated that the expected GDP growth in 2024 is linked to government-initiated reform programs that address investment challenges and enhance productivity in critical sectors. The Services sector was identified as a key driver, and a potential rebound in the Oil sector is expected to contribute to the overall economic growth.

The report highlighted the possibility of increased investments in key sectors, leading to improved productivity and job creation, which could alleviate unemployment. It suggested that Nigeria’s economic projections hinge on a global crude oil price averaging $90/barrel, higher than the proposed $77.96/barrel in the 2024 budget.

Chief Economist and Director of Research of NESG, Dr. Olusegun Omisakin, stressed the importance of a comprehensive roadmap for economic transformation.

“What we proposed in our report is a roadmap that not only speaks to the need for transformation but also to how we get it done and the time frame that we use also matters”, he said.

Chairman of the NESG, Niyi Yusuf, acknowledged the government’s efforts but emphasised the need for more rapid actions to address deep-seated issues. Buttressing the need for better reformation, the Chairman said: “More still needs to be done and quickly too, and NESG stands ready to continue its collaborative efforts with the federal and subnational governments to achieve these transformative goals as a concerted and coordinated approach and effective policy implementation will propel Nigeria towards a more resilient, inclusive and prosperous future.”

Launched with so much fanfare, one can only hope the prospects of the macroeconomic outlook does not fall through due to inadequate follow-through or misappropriation of funds.

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