Nigeria’s GDP grows by 4% in the third quarter

Nigeria's Gross Domestic Product (GDP) grew by 4% in the third quarter of 2021, a slight dip from the 5% growth recorded in the second quarter of the year. Cheta Nwanze, Lead Partner at SBM Intelligence, shed light on the economic data in a CNBC Africa interview, where he discussed the implications of the GDP figures and the passing of a bill for the establishment of the Real Estate Regulatory Council of Nigeria. Nwanze pointed out that the annual growth rate stood at almost minus 2%, indicating a correction after the COVID-induced slowdown. Nigeria's average growth rate in recent times has hovered around the 1.2% mark, signifying a slow return to pre-pandemic levels. The oil sector, contributing around 6 to 10% of GDP, recorded a 7.5% growth, while the services sector accounted for about 49.7% of GDP. Agriculture, however, continued to decline, with its contribution dropping to 29% year-on-year. The real estate sector has been in the spotlight due to fraudulent practices and recent incidents of building collapses. Nwanze emphasized the need for stringent enforcement of existing building codes before introducing new regulations. He highlighted Nigeria's significant housing deficit estimated at 22 million units, stressing the importance of balancing the demand for housing with the need for safety and adherence to regulations. The proposed Real Estate Regulatory Council aims to address these concerns by overseeing and monitoring the real estate sector to curb malpractices. Moreover, Nwanze discussed the challenges facing the enforcement of building regulations at both the federal and state levels. He underscored the importance of accountability and enforcement, citing past building collapses in Lagos and the failure to implement national building codes effectively. The Lead Partner at SBM Intelligence emphasized the need for a holistic approach to address the housing deficit while ensuring the safety and compliance of building projects. In conclusion, Nwanze emphasized the significance of enforcing existing laws and regulations, rather than solely focusing on introducing new ones. He called for a concerted effort to improve oversight, regulation, and compliance in the real estate sector to enhance transparency, safety, and accountability.