Rédaction Africa Links 24 with Taiwo Amodu
Published on 2024-02-27 16:00:09
The Independent Media and Policy Initiative (IMPI) has expressed its confidence in Nigeria experiencing economic growth in 2024, based on the Gross Domestic Product figure from the last quarter of 2023. The anticipated growth is expected to be primarily driven by the non-oil sector and the expansion in the financial sector, as the Central Bank of Nigeria works towards managing the inflation rate and stabilizing the foreign exchange rate.
In a statement signed by its chairman, Niyi Akinsiju, the policy group explained that their optimistic outlook is based on a thorough analysis of the latest GDP figures released by the National Bureau of Statistics (NBS). The data also revealed a significant rebound in oil production following a three-year contraction period.
According to the NBS, the real growth of the oil sector surged to 12.11 percent year on year in the fourth quarter of 2023. This represented a 25.50 percentage point increase compared to the rate recorded in the same quarter of 2022, which was -13.38 percent. Additionally, there was a 12.96 percentage point growth compared to the third quarter of 2023, which was -0.85 percent.
The nation recorded an average daily oil production of 1.55 million barrels per day in the fourth quarter of 2023, higher than the 1.34 million barrels per day recorded in the same quarter of 2022. This increase in oil production has significant implications for the inflow of foreign exchange as the country heavily relies on crude oil exports for more than 90 percent of its foreign exchange earnings.
The increase in crude oil production has been attributed to the country having about 30 functioning rigs in its upstream oil and gas sector. This is a significant improvement compared to the average rig count of 11, 7, and 20 in 2020, 2021, and 2022 respectively. The increased rig count indicates a vibrant oil industry with boosted drilling activities.
IMPI emphasized that the performance of both the oil and non-oil sectors will contribute to further economic growth. They believe that the economy has weathered critical stages such as adjusting to subsidy removal policies and the unification of foreign exchange rates. Despite prevailing challenges, they anticipate a positive economic growth trajectory in 2024.
With increased GDP growth expected in 2024, driven by the non-oil sector and financial sector expansion, IMPI foresees improvements in living standards for citizens in the months ahead. Their confidence stems from the regulatory increases in interest rates by the Central Bank of Nigeria to combat inflation and stabilize the foreign exchange rate.
Overall, IMPI’s assessment points towards a promising economic outlook for Nigeria in 2024, with a focus on key sectors and policies that are expected to drive growth and improve the overall economic landscape.
Read the original article on Nigerian Tribune
