An investment bank, Comercio Partners, has said that the adoption of strategic interventions and policy support will boost the growth rate of Nigeria’s Gross Domestic Product.
The Co-Founder, Comercio Partners, Nnamdi Nwizu, stated this in an analysis of the GDP report for the third quarter.
Nwizu noted that the GDP growth of 2.54 per cent in Q3, 2023 was indicative of a resilient Nigerian economy, demonstrating notable recovery from previous economic challenges.
He said, “The Nigerian economy exhibited resilience, driven by a diversified economic base. Strategic interventions, policy support, and a focus on sustainable growth sectors will be pivotal in ensuring a favourable GDP outlook for both Q4, 2023 and the fiscal year 2023. Continued collaboration between the public and private sectors will contribute to the overall economic vibrancy of the nation.”
Nwizu added, “The service sector’s standout performance, with a robust 3.99 per cent growth, has played a pivotal role in driving overall economic expansion. Despite the oil sector experiencing a slight contraction of -0.85 per cent, it remains a crucial contributor, contributing 5.48 per cent to the GDP.”
Highlighting areas of concern in the GDP Q3, 2023 report, Nwizu said, “The contraction in the oil sector, albeit modest at -0.85 per cent, raises concerns due to its historical significance in Nigeria’s economic landscape.
“The marginal decline in the agricultural sector’s growth to 1.30 per cent in Q3’2023 from 1.34 per cent in Q2 2023 is a nuanced concern. Agricultural activities are pivotal for food security and employment generation. Addressing challenges such as inadequate infrastructure, access to finance, and climate-related issues becomes imperative to unlock the sector’s full potential and reduce Nigeria’s dependence on imported food products.
“While the non-oil sector’s growth at 2.75 per cent remains positive, the 0.84 per cent decrease from Q2 2023 warrants attention. The deceleration is largely attributed to a slowdown in information and communication, finance, and insurance.”
On the outlook for Q4, 2023, Nwizu expressed optimism that the oil sector may experience a more positive trend despite the challenges of Q3, 2023.
He also projected that the non-oil sector’s performance, driven by key contributors such as information and communication, finance, agriculture, trade, construction, and real estate, will continue to positively impact GDP growth.”
Nwizu, however, noted that consideration of global economic conditions remains paramount, adding that geopolitical events, trade dynamics, and fluctuations in commodity prices can influence Nigeria’s economic outlook.
Consequently, he called for a proactive approach to navigating global uncertainties.
SOURCES: PUNCHNG
