Nigeria’s Economy: The Tough Reality
Nigeria’s Economy in a Tough Spot: What’s Going On?
So, here’s the deal – Nigeria’s economy is not looking so great right now. According to the National Bureau of Statistics (NBS), a whopping 28 sectors of the economy took a nosedive in the second quarter of 2022. That’s a big deal, especially when you consider that the real Gross Domestic Product (GDP) shrank by a staggering N63.49 billion quarter-on-quarter.
The NBS data paints a pretty gloomy picture. While the real GDP did grow by 3.54 per cent year-on-year in Q2 2022, it took a hit and declined by 0.37 per cent from N17.35 trillion to N17.29 trillion. Ouch. The blame for this decline is put on lower economic activity that was seen in Q1 2021. Not good.
Let’s break it down further. Out of the 46 economic activity sectors captured by the NBS, only 18 experienced growth in the quarter under review. The agriculture sector had some mixed results – some sub-sectors grew, while others declined. Crop production went up, livestock went down, forestry went up, and fishing went down.
The mining and quarrying sector had its own ups and downs. Crude petroleum and natural gas declined, coal mining grew, metal ores declined, and quarrying other minerals grew. It’s a rollercoaster, isn’t it?
The manufacturing sector had a tough year, with inflation and foreign exchange scarcity putting a damper on growth. Only three subsectors recorded any growth. Oil refining went up, cement went down, food, beverage and tobacco went down, and the list goes on.
The electricity, gas, steam, and air conditioning supply sector saw some growth, while construction, accommodation, and food services took a hit. Transportation and storage had its own mix of growth and decline, and the telecommunications and information services sector showed some promise.
The financial and insurance sector, real estate, and professional services all faced their own challenges. It’s a tough time for the economy, and it’s affecting businesses and citizens alike.
Economic experts are sounding the alarm, highlighting issues of productivity, competitiveness, and the challenging operating environment. Small and medium-sized enterprises (SMEs) are particularly vulnerable, with a high mortality rate for small businesses. The citizens are feeling the pinch too, with serious economic hardship due to inflation and its impact on purchasing power.
In light of these grim economic indicators, it’s time for action. The managers of the nation’s economy and policymakers need to step up and address the economic drift. A state of emergency on the economy might just be what’s needed to turn things around and accelerate the nation’s development. It’s time for a change.
