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Nigeria’s Average GDP Growth Rate Has Been Negative Since 2014 – Okonjo-Iweala |
Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), has highlighted that Nigeria’s Gross Domestic Product (GDP) growth rate has been on a steady decline since 2014, indicating a downturn in the economic well-being of the average Nigerian.
Speaking at the annual General Conference of the Nigerian Bar Association (NBA) on Sunday, Okonjo-Iweala noted that the country’s economic fortunes reversed after a decade of growth between 2000 and 2014, during which the average GDP growth rate was around 3.8%.
According to Okonjo-Iweala, this consistent GDP growth outpaced the nation’s population growth, which was approximately 2.6% annually.
However, she pointed out that since 2014, the situation has reversed, with GDP showing a negative growth rate of 0.9%, as the government has been unable to sustain the positive growth achieved by previous administrations.
“Many of the big problems the NBA is grappling with today have their roots in Nigeria’s failure to sustain a 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 were 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 had 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 added.
**Nigeria Must Sustain Good Economic Policies**
Okonjo-Iweala emphasized that the country needs to maintain good economic policies irrespective of the administration or political party in power to foster development.
She noted that policy inconsistencies have contributed to the reversal in the nation’s economic development. Furthermore, she advocated for a social contract between the government and the people that transcends political parties.
According to her, this social contract must be generally accepted on what economic policies should be followed regardless of who is in power.
“Maintaining good economic and social policies, ensuring policy consistency, and adding more reforms on top of that will lead us along the path of good progress that we all desire,” she added.
**What You Should Know**
Nigeria’s GDP growth declined to 2.98%, lower than the 3.46% recorded in the fourth quarter of 2023, according to a report from the National Bureau of Statistics (NBS). However, the GDP growth rate in the quarter is higher than the 2.31% recorded in the corresponding quarter of 2023.
GDP measures the economic activities of a country.
In recent decades, Nigeria’s economic growth has been moderate due to low exports, a reduction in oil sales—which account for about 90% of the country’s revenue—and other economic challenges.
Meanwhile, President Bola Tinubu has continuously stated his goal to increase Nigeria’s GDP to a $1 trillion economy. However, many analysts believe this goal may not be feasible amid growing concerns of high inflation, low employment rates, and rising national debt.
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