Nigeria’s economy is roaring back to life, posting its fastest growth in three years, a development that signals a positive turn for Africa’s largest economy under President Bola Ahmed Tinubu. The latest figures from the National Bureau of Statistics (NBS) show that the nation’s Gross Domestic Product (GDP) expanded by an impressive 3.84% in the fourth quarter of 2024, a clear acceleration from the 3.46% growth recorded in the previous quarter.
At the heart of this economic resurgence is the services sector, which surged by 5.37%, providing the much-needed boost that has propelled the nation forward. This remarkable growth follows a series of bold economic reforms initiated by President Tinubu, aimed at unlocking Nigeria’s vast economic potential.
Breaking Free from Economic Stagnation
When President Tinubu assumed office in mid-2023, he set an ambitious target: a 6% annual GDP growth. While the full-year growth for 2024 stood at 3.40%, slightly below this target, the significant progress made so far cannot be ignored. The Tinubu administration has dismantled archaic economic policies, restructured critical sectors, and laid the foundation for long-term prosperity.
Recognizing the evolving nature of Nigeria’s economy, the government is now set to rebase its GDP data, incorporating emerging sectors such as the marine economy, arts, culture, information and communication technology (ICT), and e-commerce. This move will provide a more accurate representation of Nigeria’s economic strength, ensuring that sectors driving real growth are acknowledged and supported.
The Role of Strategic Reforms
The latest economic boom is no accident—it is a direct result of strategic interventions by the Tinubu administration. Key reforms include:
- Exchange Rate Unification: The removal of multiple exchange rates has brought greater transparency to the foreign exchange market.
- Fuel Subsidy Removal: While initially painful, this move has redirected funds towards infrastructure and social programs.
- Investment in Critical Sectors: Policies encouraging foreign direct investment (FDI), digital innovation, and entrepreneurship have sparked new economic activities.
- Agricultural and Industrial Growth: Agriculture grew by 1.76%, while industrial output expanded by 2.00%, reflecting improved production efficiency and government-backed initiatives.
The World Bank has acknowledged these reforms as a game-changer, stating that 2024 marked a turning point for Nigeria’s economic revival.
Oil Production Stabilizes Amid Diversification Efforts
Despite global energy uncertainties, Nigeria’s oil production remained steady at 1.54 million barrels per day in Q4 2024. However, unlike in the past, economic growth is no longer solely dependent on oil revenues. The diversification strategy championed by President Tinubu is reducing Nigeria’s reliance on crude exports and expanding new growth frontiers.
The Road Ahead: Sustained Growth and Investor Confidence
The International Monetary Fund (IMF) projects that Nigeria’s economy will grow by 3.2% in 2025, an indicator of continued expansion and investor confidence. The administration is keen on maintaining momentum by ensuring business-friendly policies, infrastructure development, and further economic liberalization.
While challenges remain—particularly inflation and cost-of-living concerns—the trajectory of Nigeria’s economy is undeniably positive. The latest GDP figures prove that President Tinubu’s economic blueprint is delivering results, and if current policies are sustained, Nigeria could very well surpass expectations in the coming years.
Conclusion: A New Era for Nigeria’s Economy
The days of economic stagnation are fading, and in their place, a new Nigeria is emerging—one driven by innovation, investment, and bold leadership. The numbers speak for themselves: Nigeria’s economy is on an upward trajectory, and with sustained reforms, the nation is on course to reclaim its position as a dominant economic force in Africa.