Tinubu’s govt claims Nigeria’s economy grew by 3.4% despite rising poverty
President Bola Ahmed Tinubu-led administration has claimed that the Nigerian economy witnessed growth despite galloping inflation and monumental poverty in the country.
This was according to a report released by the Nigeria Bureau of Statistics (NBS) on Monday.
“Nigeria’s Gross Domestic Product (GDP) grew by 3.46% (year-on-year) in real terms in Q3 2024”, said the statistical office.
The report noted that the growth rate is higher than the 2.54% recorded in Q3 2023 and higher than Q2 2024 growth of 3.19%.
This report came amid the struggles of Nigerians with the existential realities of rising inflation and extreme poverty in the country.
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A recent report by the NBS indicates that Nigeria’s inflation rate rose for the second straight month in October 2024, climbing to a four-month high of 33.9% from 32.7% in September. The rise, according to the office, was driven primarily by escalating food prices, soaring energy costs and ongoing volatility in foreign exchange markets.
Food inflation, which makes up most of Nigeria’s inflation basket, quickened further to 39.2% in October, up from 37.8% in September, amid reduced harvests caused by severe flooding and the ongoing crisis in key agricultural regions.
Meanwhile, a development update report released by the World Bank in October shows that over 129 million Nigerians now live below the national poverty line. This represented a sharp rise from 40.1 per cent in 2018 to 56 per cent in 2024.
The global financial body blamed the worrisome development on inflation, poor economic management and external shocks.
“With growth proving too slow to outpace inflation, poverty has risen sharply. Since 2018, the share of Nigerians living below the national poverty line16 is estimated to have risen sharply from 40.1 per cent to 56.0 per cent.
“Combined with population growth, this means that some 129 million Nigerians are living in poverty. This stark increase partly reflects Nigeria’s beleaguered growth record. Real GDP per capita has not recovered to the level it was at prior to the oil price-induced recession in 2016”, the report stated.
Nigeria, as the largest economy in Africa, has been navigating a complex economic landscape characterized by various challenges and opportunities. The country is a federation of 36 states plus the Federal Capital Territory, with a diverse population and rich cultural heritage. Since President Bola Ahmed Tinubu took office on May 29, 2023, following his victory in the February elections, there have been significant efforts to address Nigeria’s economic issues through bold reforms aimed at stabilizing and revitalizing the economy.
While Nigeria faces substantial challenges that threaten its economic growth trajectory—including high poverty rates affecting nearly 39% of its population—the government claims its reform initiatives provide a pathway toward recovery if effectively implemented alongside necessary structural changes.
