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Nigeria’s GDP growth rate has steadily declined since 2014– Okonjo-Iweala


 Ngozi Okonjo-Iweala, the director-general of the World Trade Organisation (WTO), says the average growth rate of Nigeria’s gross domestic product (GDP) has been steadily declining since 2014.

 

This, she said, signals a downturn in the economic wellbeing of the average Nigerian.

 

Okonjo-Iweala spoke on Sunday at the opening ceremony of the 2024 Annual General Conference of the Nigerian Bar Association (NBA) in Lagos.

 

In the first quarter of the year, Nigeria’s GDP slowed to 2.98 percent — lower than the 3.46 percent recorded in the fourth quarter (Q4) of 2023.

 

According to the WTO director-general, the country’s economic fortunes experienced a steady rate between the years 2000 and 2014 — during which the average GDP growth rate was approximately 3.8 percent.

 

However, she said since 2014, the situation has reversed, stressing that the GDP is showing a negative growth rate of 0.9 percent due to the government’s inability to sustain the positive growth achieved by previous administrations.

 

“Many of the big problems the NBA is grappling with today have its root in Nigeria’s failure to sustain the rate of economic growth and development that consistently outpaced the growth of our population,” Okonjo-Iweala said.

 

 “We have had episodes of reforms and faster economic growth that were not merely a function of the price of oil.

 

“But we have been unable to consolidate and build on them and millions of our compatriots have paid the price in terms of diminished job prospects and human wellbeing.

 

“For example, in the decade between 2000 and 2014, we have an average GDP growth rate of 3.8% well above our population growth rate of 2.6% per annum, meaning that people were on average truly improving their standard of living.

 

“During the following decade, average annual GDP per capita has been negative around minus 0.9% meaning people were worse off because we were not able to sustain prior positive growth momentum.”

 

Okonjo-Iweala said the country needs to sustain good economic policies irrespective of the administration or political party in power to foster development in the country.

 

The former finance minister said policy inconsistencies have accounted for the reversal in the fortune of the nation’s economic development.

 

To address the instability, the economist called for a social contract between the government and the people which will go beyond the political party in power.

 

According to Okonjo-Iweala, this social contract must be generally accepted on what economic policies should be followed regardless of who is in power.

 

The WTO boss also said maintaining good economic and social policies, maintaining policy consistency, and adding more reforms on top of that would lead Nigeria along the path of good progress that everyone desires.

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