Nigeria’s annual economic growth rate slowed to 2,51% in the second quarter, data showed on Friday, hurt by a fall in oil production amid a series of reforms by the country’s new president, Bola Tinubu, aimed at reviving Africa’s largest economy.
The data, which marks the 11th consecutive quarter of growth, is the first release since Tinubu embarked on the country’s boldest reforms in decades to try and boost output, which has been sluggish for several years.
“This growth rate is lower than the 3,54% recorded in the second quarter of 2022, and may be attributed to the challenging economic conditions being experienced,” the National Bureau of Statistics (NBS) says.
Tinubu has scrapped a popular but costly petrol subsidy and lifted foreign exchange trading restrictions.
This has, however, worsened inflation, currently in double digits, fuelling anger and frustration for a population grappling with a cost-of-living crisis.
Tinubu at his inauguration in May vowed to expand the economy by at least 6% a year, lift barriers to investment, create jobs, and unify the exchange rate, while also tackling rampant insecurity.
He inherited a struggling economy with record debt, shortages of foreign exchange and fuel, a weak currency, inflation at a near two-decade high, skeletal power supplies, and falling oil production due to crude theft and underinvestment.
Nigeria, Africa’s top oil producer, recorded average oil output of 1,22 million barrels per day (mbpd) in the second quarter, down from the daily average of 1,43mbpd registered in the same quarter of 2022.
The dominant oil sector, which accounts for the bulk of government revenue and 90% of foreign-exchange reserves, contracted 13,43%.
The NBS says second-quarter growth was driven by the services sector, which grew 4,42% year on year.
– CNBC Africa
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