The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, has raised a red flag over Nigeria’s declining economic growth rate, warning of a significant downturn in the nation’s economic fortunes.
Speaking at the annual General Conference of the Nigerian Bar Association (NBA), Okonjo-Iweala noted a stark contrast between the country’s economic performance before and after 2014.
In the decade leading up to 2014, Nigeria’s Gross Domestic Product (GDP) grew at an average rate of 3.8%, outpacing its population growth of 2.6%. This steady progress translated into improved living standards for the average Nigerian.
However, since 2014, the situation has reversed. The country’s GDP growth rate has plummeted, with an average annual decline of 0.9%. This reversal, according to Okonjo-Iweala, is a direct result of the government’s failure to sustain the positive growth momentum achieved by previous administrations.
“Many of the big problems the NBA is grappling with today stem from Nigeria’s inability to maintain a consistent rate of economic growth and development that outpaces our population growth,” she emphasized.
“We have had periods of reforms and faster economic growth, but we have been unable to consolidate and build upon them, and millions of our compatriots have suffered the consequences in terms of diminished job prospects and human well-being.”
Policy Inconsistency and Economic Stagnation
Okonjo-Iweala attributed the decline in economic growth to policy inconsistencies and a lack of a long-term vision. She stressed the importance of maintaining good economic policies across different administrations and political parties to foster sustainable development.
“A social contract between the government and the people, beyond political affiliations, is crucial,” she stated. “This contract must outline a general agreement on economic policies to be followed regardless of who is in power.”
Recent Economic Indicators
While the WTO chief sounded the alarm, recent economic data presents a mixed picture. Nigeria’s GDP grew by 2.98% in the first quarter of 2024, slightly lower than the 3.46% recorded in the previous quarter but higher than the 2.31% figure of the same period in 2023.
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However, these short-term gains are overshadowed by the broader economic challenges facing the country. Rising inflation, high unemployment rates, and a growing national debt cast a shadow over President Bola Tinubu’s ambitious goal of achieving a $1 trillion economy.
If You Ask Me
Okonjo-Iweala’s warning serves as a stark reminder of the urgent need for Nigeria to address its economic challenges. Nigeria’s economic growth has stalled in recent years, reversing a decade of progress. To address this challenge, the country must prioritize policy consistency, invest in reforms, and address underlying economic issues. By taking decisive action, Nigeria can regain its economic momentum and improve the lives of its citizens.
