Nigeria's Economy Grows Twice Pre-Reform Rate in 2023

A report by ThinkBusi Africa indicates that Nigeria's economy is growing at approximately twice its pre-reform trajectory, with real GDP growth accelerating from 2.31% in the first quarter of 2023 to 2.98% in the first quarter of 2024, and projected to rise to 3.13% in Q1 2025 and 3.89% in Q1 2026. The report highlights significant improvements in economic performance following major macroeconomic reforms initiated in 2023.

However, it warns that policymakers face challenges in ensuring that growth translates into stronger public revenue, fiscal strength, poverty reduction, and job creation. The report also notes that Nigeria's economy expanded at an average rate of about 2% annually from 2015 to 2022, barely keeping pace with population growth.

It emphasizes that the recent growth is not an isolated event but a result of comprehensive reforms addressing long-standing structural constraints, including exchange rate liberalization and subsidy removal. Despite the positive trends, the report cautions that government revenue continues to lag behind expenditure, necessitating tighter fiscal conditions.