NBS: Nigeria’s GDP grew 2.98% y/y in Q1’24

Nigeria's Gross Domestic Product saw a growth of 2.98% in the first quarter of 2024, according to the National Bureau of Statistics (NBS). The Services sector was the main driver of this growth, expanding by 4.32% and contributing 58.04% to the total GDP. Vincent Nwani, Strategy Leader for West Africa at SAFRIK Investments Group, joined CNBC Africa to analyze the report. Nwani expressed his initial thoughts on the numbers, highlighting a year-on-year increase but pointing out a slowdown compared to the previous quarter. He emphasized the significance of these figures coinciding with the current political administration's one-year milestone. However, he noted that the growth rate remains below the country's population growth rate of 3.5% per annum, indicating a lag in economic expansion. Last year's first quarter was particularly challenging due to cashless and currency issues in the informal sector, impacting overall economic performance. Nwani underscored the need for the government to leverage recent reforms effectively or consider additional adjustments to stimulate economic growth. The clash between fiscal and monetary policies presents a dilemma for authorities seeking to balance inflation and growth. Despite efforts to boost infrastructure spending and remove subsidies, the Central Bank's tight monetary measures may impede progress. Nwani advocated for a cohesive approach involving multiple government agencies to address challenges, including insecurity, currency crisis, and business closures affecting various sectors. He identified agriculture as a key area for immediate improvement, citing its significant contribution to economic activities. Enhancing security and supporting farmers could yield positive outcomes by boosting employment, food security, and curbing inflation. Nwani urged clear communication on security and exchange rate policies to instill business confidence and facilitate planning. As Nigeria seeks to reclaim its status as Africa's largest economy, Nwani urged specific reforms to tackle insecurity and stabilize the exchange rate. He emphasized the importance of predictability for businesses to thrive in Nigeria's evolving economic landscape. With expectations high for the President's upcoming address, Nwani expressed hope for strategic announcements to propel the economy forward.