GDP: Nigeria’s economy making progress – Don

Prof. Abiodun Adeniyi says that Nigeria’s economy is showing progress, though this may not yet be evident in the living standards of Nigerians.

Adeniyi, who is the Dean, School of Postgraduate Studies, Base University Abuja, said this in an interview with Newsmen in Abuja on Sunday.

He was speaking against the backdrop of the Q3 2024 Gross Domestic Product (GDP) figures released by the National Bureau of Statistics(NBS), which showed Nigeria’s GDP grew by 3.46 per cent in real terms.
He was speaking against the backdrop of the Q3 2024 Gross Domestic Product (GDP) figures released by the National Bureau of Statistics(NBS), which showed Nigeria’s GDP grew by 3.46 per cent in real terms.According to the report, this growth rate is higher than the 2.54 per cent growth recorded in Q3 2023 and the 3.19 per cent growth achieved in Q2 2024.

The report said the performance of the GDP in Q3 2024 was driven by contributions from both the oil and non-oil sectors, with the service sector taking the lead with a growth of 5.19 per cent, contributing 53.58 per cent to the aggregate GDP.

The service sector includes sectors such as banking and finance, trade, tourism, real estate, telecommunications, information and communication technology, arts, entertainment and recreation, and education.

Adeniyi, an Economic Analyst, said the growth was a monetary policy indicator which may not be reflecting on the fiscal policy measure.

He said since the manufacturing and production sector was witnessing a decline, the only variant that could increase Nigeria’s GDP was the service sector, which was evident from the report.

“Yes, we need to appreciate that there is growth even if it is still marginal and obviously inconsequential, which is why it is not being reflected in people’s lives and standard of living.

“However because it is not being reflected in the lives of Nigerians does not change the fact that there is growth in our GDP.

“ There is growth, but what we need to do in the circumstance is to ensure there is a merger, an alliance between fiscal policy and monetary policy, between the macroeconomic variant of GDP and the macroeconomic indices.

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“ By the time there is an alignment, then, of course, we can envisage a time when it will be reflected in people’s standard of living.

“Then the cost of living crises can begin to abate because what it means is that the economy is obviously on the path to recovery, not just in statistical terms but in practical terms as the case may be.”

Adeniyi said it was important to note that Nigeria was on the right track in spite of the marginal growth witnessed.

According to him, even though the kind of change we want to see is not yet obvious we should not also deny ourselves the fact that we are making progress, however little.

He called on the government to remain consistent in its policies towards achieving economic stability and sustainability.

“We need policy consistency, not just in pronouncements and word of mouth but in actions, in optics, in lifestyle and conduct, in expenditure, transparency and accountability.

“By the time all these become evident we can be sure we are completely on the right track.”

Source :Vanguard