Nigeria Projects 3.3% GDP Growth in 2024 as Inflation Surge Pass 32% Year-on-Year


Nigeria Implements Ambitious Reforms for Economic Stability and Growth
Fiscal Position Strengthens as Nigeria Focuses on Revenue Mobilization

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Under its new administration, Nigeria has embarked on an ambitious reform agenda aimed at restoring macroeconomic stability and fostering inclusive growth. The government has initiated significant reforms, including the overhaul of fuel price subsidies, the unification of official foreign exchange windows, and a focus on revenue mobilization, governance enhancement, and strengthening social safety nets.

Despite facing challenges such as limited reforms, security issues, weak growth, and high inflation over the past decade, Nigeria has swiftly exited the Covid-19 recession. However, per-capita income stagnation remains a concern, with real GDP growth slowing to 2.9 percent in 2023. Growth is projected to reach 3.3 percent in 2024, driven by improvements in oil production and agriculture output amid enhanced security measures.

Inflation, which reached 32 percent year-on-year in February 2024, is mainly driven by food price inflation and loose financial conditions. The government aims to gradually reduce inflation to 24 percent year-on-year by the end of 2024 through continued monetary tightening.

The fiscal position strengthened in 2023, supported by increased revenues and expenditure rationalization. Efforts to strengthen the social cash transfer system and enhance revenue administration have been initiated, with initial payments already made.

While gross international reserves declined in 2023 due to capital outflow pressures, the naira has started to stabilize following monetary policy tightening and foreign exchange interventions. Despite near-term risks, steadfast implementation of reforms is crucial for achieving faster, inclusive, and resilient growth.

The Executive Board Assessment acknowledges the bold reforms implemented by the new administration and emphasizes the importance of well-sequenced reforms to restore macroeconomic stability and reduce poverty. Directors commend the government’s actions to rein in inflation and restore market confidence, urging continued tight monetary policy and exchange rate flexibility. Strengthening social protection, revenue mobilization, and financial sector stability are highlighted as key priorities to unlock Nigeria’s growth potential and promote sustainable development.

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Godwin Okafor
Godwin Okafor
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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