Nigeria's economic growth slows to 2.3% in Q3'22

The recent data released by the National Bureau of Statistics has revealed a significant slowdown in Nigeria's economic growth in the third quarter of this year, with a real GDP growth rate of 2.3%. This news comes as a disappointment after a promising start to the year, with growth rates hovering around 4% in Q1, only to see a steady decline to 2.5% and now 2.3%. CNBC Africa welcomed Andrew Nevin, the Chief Economist at PWC Nigeria, to delve into the key highlights and challenges facing the Nigerian economy. Nevin shed light on the underperformance of the oil sector, which saw a dramatic 22% shrinkage due to production declines. Despite global oil prices reaching significant highs, Nigeria's oil industry continues to suffer, contributing less than 6% to the country's GDP. On a more positive note, the ICT sector experienced a growth of 16%, showcasing its potential as a key driver of economic diversification. However, challenges persist in creating a conducive business environment, with Nevin emphasizing the need for fundamental reforms to unlock Nigeria's growth potential. Nevin highlighted the mismatch between intervention programs and addressing core economic issues, pointing out the complexity of the business environment due to high taxes and regulatory burdens. Despite ongoing initiatives in sectors like agriculture and manufacturing, the root causes of economic underperformance remain unaddressed, hindering sustainable growth. The ICT sector emerged as a beacon of hope, posting a 10.5% growth and contributing significantly to GDP. Nevin emphasized the importance of leveraging Nigeria's expertise in high-value-added services through remote work opportunities and tech-driven solutions. This strategic approach not only capitalizes on existing talent but also aligns with global workforce trends, positioning Nigeria as a competitive player in the digital economy. As the country navigates through economic challenges and external shocks like the Russia-Ukraine war, Nevin emphasized the need for targeted reforms that address structural constraints and foster a favorable investment climate. The road to revitalizing Nigeria's economy lies in embracing technological advancements, enhancing business competitiveness, and fostering innovation across key sectors. With the right policy framework and a focus on sustainable growth strategies, Nigeria can unlock its vast economic potential and chart a path towards resilience and prosperity.