The Nigerian Economic Summit Group (NESG) has stated that the country’s improved economic growth in 2024 is largely attributable to the gains from the Federal Government’s policy reforms.
According to the NESG GDP Alert: 2024Q4 & Full Year 2024, released on Thursday, the Nigerian economy maintained an upward growth trajectory throughout the year, expanding by 3.8 per cent in the fourth quarter (Q4) of 2024 relative to 3.5 per cent in the corresponding quarter of 2023.
On a quarter-on-quarter basis, the real Gross Domestic Product (GDP) grew by 12.4 per cent in Q4 2024, compared to 11.9 per cent in Q4 2023.
The NESG noted that cumulatively, Nigeria’s GDP growth stood at 3.4 per cent in 2024, surpassing the 2.8 per cent recorded in 2023.
According to the group, a combination of fiscal and monetary policy adjustments, economic liberalisation efforts, and increased investment in infrastructure were the major factors that contributed to the improved economic performance.
It further listed the removal of fuel subsidies, exchange rate unification, and aggressive tax reforms as key measures that helped stabilise macroeconomic fundamentals and boost investor confidence.
The NESG further said increased foreign direct investment (FDI) inflows, particularly in the technology, manufacturing, and agricultural sectors, also contributed to the overall economic expansion.
It added that the government’s focus on enhancing ease of doing business and providing targeted incentives for the private sector played a pivotal role in sustaining growth momentum.
The NESG report highlighted sectoral disparities, particularly in the electricity sector, which experienced slowed growth due to the incessant collapse of the national grid and vandalisation of strategic power infrastructure across the country in 2024.
It said these persistent challenges limited industrial productivity and increased operational costs for businesses.
Conversely, the services sector, which includes telecommunications, fintech, and trade, saw robust growth, driven by increased digital adoption and consumer spending. The agricultural sector also recorded moderate expansion, supported by government-backed initiatives aimed at boosting local food production and improving agricultural value chains.
The NESG projected a sustained positive growth trajectory, contingent on continued implementation of structural reforms and strategic investment in key sectors.
It, however, warned that inflationary pressures, exchange rate volatility, and security concerns remain key downside risks that could hinder economic stability.
“The government’s bold reforms are yielding results, albeit sub optimal and insufficient to sustain economic growth over the medium term. These reforms, such as the removal of fuel subsidies, exchange rate harmonisation, and other complementary measures aimed at addressing the structural bottlenecks, are found to favourably impact the performance of key sectors in the year,” the NESG noted.
The group recommended further strengthening of power sector reforms, addressing forex market inefficiencies, and ensuring policy consistency to sustain economic gains in 2025.
