The World Trade Organization’s (WTO) Director General, Ngozi Okonjo-Iweala, has noted that Nigeria’s GDP growth rate has been generally falling since 2014, indicating a decline in the typical Nigerian’s economic well-being.
Speaking on Sunday at the Nigerian Bar Association’s (NBA) Annual General Conference, Okonjo-Iweala observed that the nation’s economic fortunes had reversed after the decade between 2000 and 2014 when the average GDP growth rate was almost 3.8%.
The WTO Director-General claimed that the country’s GDP was growing consistently at a faster rate than its population, which was only increasing by 2.6% per year.
She did, however, note that since 2014, things have turned around, with the GDP displaying a 0.9% negative growth rate since the government has been unable to maintain the positive growth that was attained by earlier administrations.
“Many of the big problems the NBA is grappling with today has its root in Nigeria’s failure to sustain rate of economic growth and development that consistently outpaced the growth of our population.
“We have had episodes of reforms and faster economic growth that was not merely a function of the price of oil. But we have been unable to consolidate and build on them and millions of our compatriots have paid the price in terms of diminished job prospects and human well-being.
“For example, in the decade between 2000 and 2014, we have an average GDP growth rate of 3.8% well above our population growth rate of 2.6% per annum, meaning that people were on average truly improving their standard of living.
“During the following decade, average annual GDP per capita has been negative around minus 0.9% meaning people were worse off because we were not able to sustain prior positive growth momentum,” Okonjo-Iweala stated.
Nigeria must maintain good economic policies
Speaking further, Okonjo-Iweala stated that to promote national growth, the nation must maintain sound economic policies regardless of the government or political party in power.
- The country’s economic development has reversed, according to the previous Finance Minister, and this is due to policy contradictions.
- She also supported a social compact that transcends the political party in power and unites the people and the government.
- She argues that regardless of who is in power, there needs to be a general acceptance of this social compact regarding the economic principles that should be adhered to.
“Maintaining good economic and social policies; maintaining policy consistency and adding more reforms on top of that will lead us along the path of good progress that we all desire,” she continued.
What to note
According to a study from the National Bureau of Statistics (NBS), Nigeria’s GDP growth decreased to 2.98% from the 3.46% rate reported in the fourth quarter of 2023.
Nonetheless, the quarter’s GDP growth rate is better than the 2.31% level noted in the equivalent quarter of 2023.
GDP assesses a country’s economic performance
Nigeria’s economy has grown moderately during the past few decades due to some issues, including poor exports and a decline in oil sales, which provide for about 90% of the nation’s income.
President Bola Tinubu has maintained that he would raise Nigeria’s GDP to $1 trillion, but many economists don’t think this is possible given the country’s high unemployment rate, rising national debt, and high rates of inflation.
