The Dean of the School of Postgraduate Studies at Base University, Abuja, Prof. Abiodun Adeniyi, has stated that Nigeria’s economy is showing progress, though this improvement may not yet be evident in the living standards of Nigerians.
Adeniyi made this observation during an interview with Newsmen in Abuja on Sunday.
Adeniyi’s remarks came in response to the Q3 2024 Gross Domestic Product figures released by the National Bureau of Statistics, which revealed that Nigeria’s GDP grew by 3.46 per cent in real terms. This growth rate surpasses the 2.54 per cent recorded in Q3 2023 and the 3.19 per cent achieved in Q2 2024.
Key Drivers of GDP Growth
According to the Nigerian Bureau of Statistics report, the Q3 2024 GDP growth was driven by contributions from both the oil and non-oil sectors, with the service sector leading the charge. The service sector recorded a growth of 5.19 per cent and contributed 53.58 per cent to the aggregate GDP.
This sector encompasses industries such as banking and finance, trade, tourism, real estate, telecommunications, information and communication technology, arts, entertainment and recreation, and education.
Adeniyi, an Economic Analyst, explained that while the growth is a positive monetary policy indicator, it may not yet be reflected in fiscal policy measures or the living standards of the populace.
“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,” he said.
The Disconnect Between GDP Growth and Living Standards
Adeniyi highlighted the challenges facing the manufacturing and production sectors, noting their decline. He pointed out that the service sector’s growth is currently the key driver of Nigeria’s GDP, as indicated by the report.
“However, because it is not being reflected in the lives of Nigerians does not change the fact that there is growth in our GDP,” he added. “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.”
Adeniyi expressed optimism about the future, stating, “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.”
Progress Amid Marginal Growth
Despite the marginal nature of the growth, Adeniyi stressed the importance of recognising that Nigeria is on the right track.
“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 said.
He urged the government to maintain consistency in its economic policies to achieve 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,” he said.
“By the time all these become evident, we can be sure we are completely on the right track.”
