The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, has expressed concern over Nigeria’s steadily declining Gross Domestic Product (GDP) growth rate since 2014, highlighting its implications for 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 Nigeria’s economic performance witnessed a significant reversal following a period of robust growth between 2000 and 2014, during which the average GDP growth rate was approximately 3.8%. This period of growth was notable for surpassing the nation’s population growth rate, which was around 2.6% annually.
However, Okonjo-Iweala pointed out that since 2014, the trend has reversed, with GDP growth showing a negative average rate of 0.9%, as the government has struggled to maintain the positive momentum 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,” she remarked.
“We have had episodes of reforms and faster economic growth that were not merely a function of oil prices. 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 the prior positive growth momentum,” Okonjo-Iweala added.
Call for Sustained Economic Policies
Okonjo-Iweala further emphasized the need for Nigeria to sustain sound economic policies, regardless of the administration or political party in power, to foster long-term development. She attributed the reversal in the nation’s economic fortunes to policy inconsistencies and advocated for a social contract between the government and the people, which would transcend political affiliations.
“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 building on past reforms will lead us along the path of progress that we all desire,” she said.
Key Economic Insights
- According to a report from the National Bureau of Statistics (NBS), Nigeria’s GDP growth declined to 2.98% in the first quarter of 2024, lower than the 3.46% recorded in the fourth quarter of 2023. However, this figure is higher than the 2.31% growth rate recorded in the corresponding quarter of 2023.
- GDP is a measure of a country’s economic activities and health. Over the past decades, Nigeria’s economic growth has been moderate, hindered by factors such as low exports, reduced oil sales—which account for about 90% of national revenue—and other economic challenges.
- Meanwhile, President Bola Tinubu has repeatedly stated his ambition to increase Nigeria’s GDP to a $1 trillion economy. However, many analysts are skeptical about the feasibility of this goal, citing growing concerns over high inflation, low employment rates, and rising national debt.
