The Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has raised concerns about Nigeria’s economic trajectory, revealing that the nation’s Gross Domestic Product (GDP) growth rate has been steadily declining since 2014. Speaking at the annual General Conference of the Nigerian Bar Association (NBA) on Sunday, Okonjo-Iweala emphasized that this downturn in GDP growth signals worsening economic conditions for the average Nigerian.
During her address, Okonjo-Iweala contrasted the recent economic struggles with the relative prosperity Nigeria experienced between 2000 and 2014. During that period, the country saw an average GDP growth rate of approximately 3.8% annually, a figure that significantly outpaced the population growth rate of 2.6% per year. This positive economic momentum resulted in improved living standards for many Nigerians.
However, the former Nigerian Finance Minister highlighted a troubling shift that began in 2014. According to Okonjo-Iweala, Nigeria’s GDP growth has since turned negative, with an average annual decline of 0.9%. This economic contraction, coupled with a growing population, has resulted in a decline in the overall well-being of Nigerians.
“Many of the big problems the NBA is grappling with today have their root in Nigeria’s failure to sustain a rate of economic growth and development that consistently outpaced the growth of our population,” Okonjo-Iweala stated.
“We have had episodes of reforms and faster economic growth that were not merely a function of the price of oil. But we have been unable to consolidate and build on them, and millions of our compatriots have paid the price in terms of diminished job prospects and human well-being.”
The WTO chief’s remarks highlight the broader implications of Nigeria’s economic downturn. With the country’s GDP growth falling below the population growth rate, more Nigerians are experiencing lower living standards, reduced job opportunities, and worsening economic prospects.
Okonjo-Iweala pointed out that during the decade following 2014, the negative growth rate meant that, on average, Nigerians were worse off than they were before. This decline has had far-reaching effects on employment, income levels, and overall quality of life across the nation.
Okonjo-Iweala did not just diagnose the problem; she also offered a prescription for reversing the economic decline. She emphasized the need for consistent and sound economic policies, regardless of which administration or political party is in power. According to her, policy inconsistencies have played a significant role in Nigeria’s economic challenges, and addressing this issue is crucial for sustainable growth.
“Nigeria must sustain good economic policies irrespective of the administration or political party in power in order to foster development in the country,” Okonjo-Iweala urged. She further advocated for the establishment of a social contract between the government and the people, which would ensure that essential economic policies are maintained consistently, regardless of changes in leadership.
This social contract, she argued, should be broadly accepted and should outline the economic policies that must be followed to ensure steady growth and development. “Maintaining good economic and social policies, maintaining policy consistency, and adding more reforms on top of that will lead us along the path of good progress that we all desire,” she added.
Okonjo-Iweala’s comments come at a time when Nigeria’s economic challenges are becoming increasingly apparent. According to a recent report from the National Bureau of Statistics (NBS), Nigeria’s GDP growth rate declined to 2.98% in the first quarter of 2024. This figure is lower than the 3.46% recorded in the fourth quarter of 2023, although it is slightly higher than the 2.31% recorded in the corresponding quarter of 2023.
GDP, which measures the total economic output of a country, is a critical indicator of economic health. For Nigeria, a nation heavily reliant on oil exports, fluctuations in global oil prices, coupled with internal economic challenges, have contributed to the erratic GDP growth patterns observed in recent years.
The declining GDP growth rate reflects broader economic issues that Nigeria faces, including high inflation, low employment rates, and rising national debt. These challenges have led many analysts to question the feasibility of ambitious economic targets set by the government.
