Nigeria ’Ll Witness Economic Growth in 2024 Under Tinubu, Policy Group Assures
The Independent Media and Policy Initiative (IMPI) predicts a positive economic outlook for Nigeria in 2024, citing the GDP data from the final quarter of 2023.
According to a statement by IMPI's Chairman Niyi Akinsiju in Abuja on Tuesday, they anticipate growth primarily fueled by the non-oil sector and an expanding financial sector.
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They highlight efforts by the Central Bank of Nigeria to address inflation and stabilize foreign exchange rates as contributing factors.
A thorough analysis informs IMPI's assessment of the latest GDP figures from the National Bureau of Statistics.
This indicates a notable recovery in oil production following a three-year decline.
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It said:
"According to NBS, real growth of the oil sector spiral upward to 12.11 percent year on year in Q4 2023.
"This indicated an increase of 25.50 percentage points (highest in the last three years) compared to the rate recorded in the corresponding quarter of 2022 which was -13.38 percent. Growth also increased by 12.96 percentage points when compared to Q3 2023 which was -0.85 per cent.
"By way of production breakdown, the nation in the fourth quarter of 2023, recorded an average daily oil production of 1.55 million barrels per day (mbpd), higher than the daily average production of 1.34mbpd recorded in the same quarter of 2022 by 0.21mbpd."
The data confirms an increase in crude oil production compared to the third quarter of 2023, rising by 0.10mbpd to surpass 1.45mbpd. This surge bears significant implications for foreign exchange inflow, as the country heavily relies on crude oil exports for over 90% of its foreign earnings.
The notable escalation in crude oil production can be attributed to the operation of approximately 30 operational rigs in the country's upstream oil and gas sector. OPEC data reveals a progressive rise in Nigeria's average rig count over the years, signalling heightened activity in the oil industry.
The rig count is a crucial gauge of drilling operations, reflecting the industry's vitality and impact on production levels and market dynamics.
This upturn suggests that the Tinubu administration likely prioritized addressing the nation's challenges in crude oil production upon assuming office.
The performance of both the oil sector and non-oil sectors is pivotal for IMPI's anticipation of further economic expansion.
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Source: Legit.ng
