President Bola Ahmed Tinubu has expressed enthusiasm following the report that Gross Domestic Product (GDP) grew in the second quarter (Q2).
The National Bureau of Statistics (NBS) put the growth of GDP in Q2 at 3.2 per cent year on year far above the 2.51 per cent recorded in the same period of 2023.
The report followed the drop in headline and food inflation last month – the first time in 19 years.
Experts said this development will reverse the economic crisis in the next few months.
The President is excited about the new figure, according to his Special Adviser on Information & Strategy Bayo Onanuga.
He said in a statement: “President Tinubu has welcomed the latest report by the National Bureau of Statistics on the state of the economy, as the country’s Gross National Product (GDP) posted another growth.
“According to NBS, the real GDP grew by 3.2 per cent year on year in Q2, higher than the 2.51 per cent recorded in the same period of 2023.
“After another report on declining food and headline inflation, this latest report affirms that the economy is on the right trajectory and is indeed on the path to recovery.
“As the President said in his August 4, 2024 national broadcast, our economy is recovering.
“Sooner than later, Nigerians will begin to feel, see, and enjoy the impact of his administration’s economic re-engineering efforts.
“We want to reiterate that this government will continue to work assiduously to rekindle Nigerians’ hope and confidence.
“President Tinubu is working to build a solid and resilient economy.
“President Tinubu urged Nigerians to retain their faith in the government and not allow themselves to be swayed by naysayers intent on aborting and undermining the current reforms for their selfish ends.
“According to the NBS report, the growth rate in Q2 is higher than the 2.51 per cent recorded in Q2 2023 and higher than the 2.98 per cent growth in Q1 2024.
“The GDP’s performance in the second quarter of 2024 was driven by the service sector, which recorded a growth of 3.79 per cent and contributed 58.76 per cent to the aggregate output.
“The agriculture sector grew by 1.41 per cent in contrast to the 1.50 per cent recorded in the second quarter of 2023.
“The industrial sector’s growth was 3.53 per cent, up from the -1.94 per cent recorded in the second quarter of 2023.
“The NBS also reported that crude production grew to 1.41 million barrels per day, compared with 1.22 million barrels a year earlier.
“We are confident that with the policies we have put in place, we expected production to rise to about two million barrels very soon.
“In terms of share of the GDP, the industry and services sectors contributed more to the aggregate GDP in the second quarter of 2024 compared to the corresponding quarter of 2023.
“In the quarter under review, aggregate GDP at basic price stood at N60,930,000.58 million in nominal terms.
“This performance is higher than the second quarter of 2023, which recorded an aggregate GDP of N52,103,927.13 million, indicating a 16.94 per cent year-on-year nominal growth.”
Experts applaud growth
A breakdown of the NBA report showed significant improvements across key sectors, with the services sector rising by 3.79 per cent, contributing 58.76 per cent to the aggregate GDP.
The agriculture sector grew by 1.41 per cent in the second quarter as against 0.18 per cent recorded in the first quarter and 1.50 per cent recorded in the second quarter of 2023.
Also, the industry sector recorded growth of 3.53 per cent in the second quarter, compared with a negative -1.94 per cent recorded in the comparable period of the second quarter of 2023 and 2.19 per cent recorded in the first quarter.
The oil sector’s real GDP grew by 10.15 per cent in the second quarter, nearly double of 5.70 per cent recorded in the previous first quarter and a major turnaround from a decline of -13.43 per cent recorded in the corresponding period of the second quarter of 2023.
The non-oil sector real GDP remained flat at 2.80 per cent over the past two quarters, lower than the 3.58 per cent recorded in the comparable period of the second quarter of 2023.
Most analysts commended the economic outlook, highlighting gains from the government’s efforts aimed at tackling oil theft and boosting the productive sectors.
Managing Director, Arthur Steven Asset Management, Mr Olatunde Amolegbe, described the economic growth as “a pleasant surprise”, expressing optimism that the growth momentum will build up further in the quarters ahead.
He said concerted efforts should be focused on non-oil sectors of manufacturing, transport, agriculture and services to further boost the economy.
“All in all, it’s a welcome step that we hope will continue in subsequent quarters,” Amolegbe said.
Managing Director, AIICO Capital, Dr Femi Ademola, said the GDP report appeared to show some gains of ongoing activities aimed at optimising the contribution of the oil sector.
“The growth is generally expected due to the increase in oil production from 1.22mbd to 1.41mbd over the period.
“The devaluation of naira over the period also improved the accruable value to the federal government in naira terms.
“The value increase in other non-oil exports and other commodities also contributed to the 2.8 per cent increase in non-oil GDP.
“The combination of these developments drove the GDP growth. The continued efforts in curbing oil theft and leakages appear to be yielding results,” Ademola said.
President, Association of Capital Market Academics in Nigeria, Prof Uche Uwaleke, called for more support to drive inclusive growth, especially across the productive sectors.
According to him, the economic structure should be such that productive sectors such as industry and agriculture are favoured in fiscal and monetary decisions.
“Indeed, structural change is strongly recommended as one of the ingredients of building productive capacities,” Uwaleke said.
He pointed out that the aggressive hike in the monetary policy rate in February and March by the CBN took a toll on output in the second quarter, which might be responsible for the decline recorded in major contributors to GDP such as manufacturing, trade, information and communication technology and real estate.
He said the growth pattern, weighted in favour of the services sector, is not healthy for a developing economy such as Nigeria’s and called for efforts to drive more inclusive growth.
Analysts at Cordros Capital noted that the economy “maintains growth trajectory”, pointing out that the economy sustained its positive growth momentum in the second quarter.
I earned N7m in one year growing tomato, pepper, says Gombe farmer
In what is seen as a reflection of the growth in agriculture, a farmer has said that he made N7 million in one year from selling his agricultural produce.
Mr Saleh Maikudi, 35, who hails Bula community in Akko Local Government Area of Gombe State, told the News Agency of Nigeria (NAN) that he became a millionaire from growing vegetables.
He said that investing in tomato and pepper farming yielded good returns.
Maikudi said he spent over N1.5 million on 30 hectares of farmland which he cultivated in 2023.
“In 2023, I made N7 million from cultivating tomato and pepper.
“I only spent N1.5 million as the total cost of preparing and planting the vegetables.
“I cultivated tomato, bell pepper (Tatashe), chilli pepper, Cayenne pepper (shombo) and Scotch bonnet (hot pepper) on my farmland.”
Maikudi, who is also the chairman of Vegetables Farmers’ Association in the community, said he cultivated 30 hectares of the vegetables annually.
He said that it took 10 weeks after cultivating the vegetables to start harvesting the commodities for another period of 10 weeks.
The farmer said that in the present wet season, farmers had started harvesting and off-takers had been coming to their community to buy the commodities for supply to various states.
He said that the year’s rainfall, which he described as moderate, was good enough for his vegetables to grow and that his tomato and pepper did well.
“If the market is good this year, I am expecting nothing less than N10 million because my vegetables really did well.’’
Maikudi advised the government to build a modern market in the community.
According to him, the facility will help standardise the marketing of vegetables and other agricultural produce as well as provide farmers with the platform to centralise the selling of the commodity.
“Also, the government can establish mini-processing factories to help farmers cut post-harvest losses, boost food security and provide more jobs for youths in the state,” he said.
