Nwizu: GDP Growth Needs Strategic Interventions, Policy Support
Kayode Tokede
Co Founder, Comercio Partners, an investment bank, Nnamdi Nwizu has said that achieving faster Gross Domestic Product (GDP) growth in Nigeria requires strategic interventions, policy support and focus on sustainable growth sectors.
Nwizu, stated this in an analysis of the Gross Domestic Product report for the third quarter, 2023.
He noted that the Q3 2023 GDP growth of 2.54 per cent in Q3’23 is indicative of a resilient Nigerian economy, demonstrating notable recovery from previous economic challenges.
“The service sector’s standout performance, with a robust 3.99% growth, has played a pivotal role in driving overall economic expansion. Despite the oil sector experiencing a slight contraction of -0.85%, it remains a crucial contributor, contributing 5.48% to the GDP, ”he said.
Highlighting areas concerns in the GDP Q3’23, Nwizu said: “The contraction in the oil sector, albeit modest at -0.85%, raises concerns due to its historical significance in Nigeria’s economic landscape.
“The marginal decline in the agricultural sector’s growth to 1.30% in Q3’2023 from 1.34% 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% remains positive, the 0.84% decrease from Q2 2023 warrants attention. The deceleration is largely attributed to a slowdown in information and communication, finance, and insurance.”
Speaking on the outlook for GDP in the last quarter of the year, Q4’23, Nwizu said expressed optimism that the oil sector may experience a more positive outlook in Q4 2023 despite challenges in Q3’23.
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 to 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 call for a proactive approach to navigating global uncertainties is essential for strategic decision-making.
“The Nigerian economy exhibits 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 Q4’23 and the fiscal year 2023. Continued collaboration between the public and private sectors will contribute to the overall economic vibrancy of the nation, Nwizu said.
