Nigeria’s Economic Resilience: A Market Opportunity?

Economist, Dr Muda Yusuf, says the country’s 3.84 per cent Gross Domestic Product (GDP) growth in the fourth quarter reflects a gradual economic recovery and the resilience of Nigerian entrepreneurs.

Yusuf, the Founder of the Centre for the Promotion of Private Enterprises (CPPE), stated this in a statement on Tuesday in Lagos.

He noted that despite the significant macroeconomic and structural challenges, private investors had continued to push forward.

He added that macroeconomic conditions began to improve in the second half of 2024, with the naira exchange rate stabilizing.

According to him, inflationary pressures have slightly eased, and energy prices have also seen a marginal decline.

“Overall, the outlook for investors confidence has been positive over the past few months.

“These are the explanatory variables driving the modest GDP performance.

“One striking outcome of the Q4 GDP report was the recovery of the petroleum refining sector from decades of recession to a positive GDP growth of an impressive 9.6 per cent.

“This was one of the best sectoral performances among the strategic sectors of the economy,” he said.

Yusuf, however, noted that in the period under review, service sector continued to outperform the real sector of the economy.

This, he said, could be attributed largely to the legacy structural impediments to real sector productivity.

“The GDP report highlights the gradual recovery of the economy and the resilience of the Nigerian private sector.

“It also underscores the need to consolidate the stability gains in the macroeconomic environment and address the productivity challenges hindering real sector performance,” he said. (NAN)