September 13, (THEWILL) – The Nigerian Economic Summit Group (NESG), a private sector-led think tank, has said businesses and citizens in the country are under massive pressure from rising costs, inflation, and a struggling economy.
“Our businesses and citizens are under massive pressure from rising costs, inflation, and a struggling economy,” NESG said Friday.
This is coming after a report of trade surplus by the National Bureau of Statistics (NBS). The Bureau had reported that Nigeria recorded a trade surplus of N6.95 trillion in the second quarter of 2024, representing a 6.60% increase from the previous quarter, which had a surplus of N6.52 trillion.
While President Bola Tinubu, on Thursday, welcomed the report and assured of a robust economy, expressing confidence in the reforms of his administration, the NESG said Friday that the country needs to take bold and decisive steps to address its economic challenges.
Speaking at a pre-summit news conference in Abuja, the Chairman of the Group, Niyi Yusuf, called for urgent rethinking and redesign of the economic systems to address underlying structural economic issues.
He noted that one of Nigeria’s pressing concerns now is translating economic growth into improved lives and livelihoods for all its citizens.
Recalling the numbers from the country’s second-quarter 2024 gross domestic product (GDP), Yusuf said that in Q2 2024, Nigeria’s economy recorded a fast GDP growth of 3.2 per cent, compared to 2.5 per cent in Q2 2023.
“Agriculture grew at 1.4 per cent in Q2 2024 from 1.5 per cent in Q2 2023, while industries grew by 3.53 per cent in Q2 2024 from -1.9 per cent in Q2 2023,” he said.
He noted that the services sector recorded a growth of 3.8 per cent in Q2 2024, falling from 4.4 per cent in Q2 2023.
“Nigeria’s weak economic performance is reflected in the declining living standards, with per capita income falling from US$2,162.60 in 2022 to US$1,645.76 in 2023. The rising cost of a healthy diet likely worsened the multidimensional poverty rate, which was 62.9 per cent in 2022,” he said.
Yusuf said Nigeria also rank low on the Human Capital Development Index (HCDI), with a score of 0.55, placing it 161st out of 191 countries.
“Our businesses and citizens are under massive pressure from rising costs, inflation, and a struggling economy. In 2023, the increased cost of living pushed an estimated 104 million people into poverty (46 per cent poverty rate) from 100 million in 2022. These numbers are compounded by food insecurity, as the number of people suffering from acute hunger in Nigeria is projected to increase to 26.5 million in the June-August 2024 lean season, from a staggering 18.6 million people at the end of 2023 and over 38 per cent of under-five children suffering from chronic malnutrition.
“These are indeed difficult times for our nation. Global instability, regional volatility, and national socioeconomic uncertainty demand that we take bold and decisive steps,” he added.
Yusuf said the theme for this year’s Summit, “Collaborative Action for Growth, Competitiveness, and Stability”, emphasises that now, more than ever, Nigeria must embrace a business-unusual approach, innovative governance, and transformational political leadership.
“It is only through collaborative action between government, business, and civil society that we can unlock Nigeria’s vast potential. Though we face tough times, there are also incredible opportunities ahead. The 30th Nigerian Economic Summit offers a platform for exploring these opportunities, and together, we can shape Nigeria’s future toward shared and sustainable prosperity,” said Yusuf.
He noted that the summit, which will be held from October 14 to 16, 2024, in Abuja, will focus on three key areas of People, Leadership, and Institutions, with sub-themes designed to tackle Nigeria’s most pressing challenges and identify growth opportunities.
In his remarks, Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, who was represented by the Permanent Secretary in the ministry, Dr. Emeka Obi, said sustained growth is key to the eradication of poverty.
He noted that the present administration is on course to achieving this by making bold and courageous decisions that will ensure macroeconomic stability and social inclusion, and promote productivity and competitiveness.
“The private sector will be the engine of growth of the economy, while the government will implement policies and regulations that promote a favourable business environment to achieve a high rate of investment and savings,” he said.
He noted that investment is necessary to create jobs and achieve the projected $1 trillion economy while structural barriers that constrain the vulnerable segment of society from realising their potential are addressed.
The Minister said the Federal Government, through the Federal Ministry of Budget and Economic Planning, in close collaboration with the Nigerian Economic Summit Group (NESG), has been organising the Annual Nigerian Economic Summit for the past 29 years.
