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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