The Nigerian Financial Summit Group (NESG) has attributed the nation’s improved financial development in 2024 to the beneficial properties from the Federal Authorities’s coverage reforms.
In line with the NESG GDP Alert: 2024Q4 & Full 12 months 2024, launched on February 27, 2025, the Nigerian economic system maintained an upward development trajectory all year long, increasing by 3.8% within the fourth quarter (This fall) of 2024 relative to three.5% within the corresponding quarter of 2023.
On a quarter-on-quarter foundation, the true Gross Home Product (GDP) grew by 12.4% in This fall 2024, in comparison with 11.9% in This fall 2023.
Cumulatively, Nigeria’s GDP development stood at 3.4% in 2024, surpassing the two.8% recorded in 2023, NESG famous.
NESG recognized a mix of fiscal and financial coverage changes, financial liberalization efforts, and elevated funding in infrastructure as main elements contributing to the improved financial efficiency.
The elimination of gasoline subsidies, alternate charge unification, and aggressive tax reforms had been highlighted as key measures that helped stabilize macroeconomic fundamentals and increase investor confidence.
Elevated international direct funding (FDI) inflows, notably within the know-how, manufacturing, and agricultural sectors, additionally contributed to the general financial growth. The federal government’s deal with enhancing ease of doing enterprise and offering focused incentives for the personal sector performed a pivotal function in sustaining development momentum.
Sectoral Efficiency
Regardless of the constructive outlook, NESG’s report famous sectoral disparities, notably within the electrical energy sector, which skilled slowed development as a result of incessant collapse of the nationwide grid and vandalization of strategic energy infrastructure throughout the nation in 2024.
These persistent challenges restricted industrial productiveness and elevated operational prices for companies.
NESG famous “Additionally, the Electrical energy sector skilled slowed development as a result of incessant collapse of the nationwide grid in 2024 and vandalisation of strategic energy infrastructure throughout the nation.”
Conversely, the providers sector, which incorporates telecommunications, fintech, and commerce, noticed sturdy development, pushed by elevated digital adoption and shopper spending. The agricultural sector additionally recorded average growth, supported by government-backed initiatives geared toward boosting native meals manufacturing and enhancing agricultural worth chains.
Outlook for 2025
NESG initiatives a sustained constructive development trajectory, contingent on continued implementation of structural reforms and strategic funding in key sectors. Nonetheless, it warned that inflationary pressures, alternate charge volatility, and safety issues stay key draw back dangers that might hinder financial stability.
The group famous “The federal government’s daring reforms are yielding outcomes, albeit sub optimum and inadequate to maintain financial development over the medium time period. These reforms, such because the elimination of gasoline subsidies, alternate charge harmonisation, and different complementary measures geared toward addressing the structural bottlenecks, are discovered to favourably affect the efficiency of key sectors within the yr.”
- The group really helpful additional strengthening of energy sector reforms, addressing foreign exchange market inefficiencies, and making certain coverage consistency to maintain financial beneficial properties in 2025.
- The newest GDP knowledge launched by the Nationwide Bureau of Statistics (NBS) reveals a 3.84% year-on-year GDP development in This fall 2024.
The report signifies that Nigeria’s economic system grew by 3.84% in actual phrases, an enchancment from 3.46% recorded in the identical interval of 2023 and the previous quarter.
Be First to Comment