FG’s subsidy removal, other reforms lift Nigeria’s 3.84% economic growth in 2024, says NESG
The Nigerian Economic Summit Group (NESG) has attributed Nigeria’s 3.8 per cent growth in Gross Domestic Product (GDP) in the fourth quarter of (Q4) 2024 to the gains from the Federal Government’s subsidy removal, among other reforms.
The latest GDP data released by the National Bureau of Statistics (NBS) shows a 3.84per cent year-on-year GDP growth in Q4 2024.
The report indicates that Nigeria’s economy grew by 3.84per cent in real terms, an improvement from 3.46per cent recorded in the same period of 2023 and the preceding quarter.
According to the NESG GDP Alert: 2024Q4 & Full Year 2024, released on February 27, 2025, the Nigerian economy maintained an upward growth trajectory throughout the year, expanding by 3.8per cent in the fourth quarter (Q4) of 2024 relative to 3.5per cent in the corresponding quarter of 2023.
On a quarter-on-quarter basis, the real Gross Domestic Product (GDP) grew by 12.4per cent in Q4 2024, compared to 11.9per cent in Q4 2023.
Cumulatively, Nigeria’s GDP growth stood at 3.4 per cent in 2024, surpassing the 2.8per cent recorded in 2023, NESG noted.
NESG identified a combination of fiscal and monetary policy adjustments, economic liberalization efforts, and increased investment in infrastructure as major factors contributing to the improved economic performance.
The removal of fuel subsidies, exchange rate unification, and aggressive tax reforms were highlighted as key measures that helped stabilize macroeconomic fundamentals and boost investor confidence.
Increased foreign direct investment (FDI) inflows, particularly in the technology, manufacturing, and agricultural sectors, also contributed to the overall economic expansion. The government’s focus on enhancing ease of doing business and providing targeted incentives for the private sector played a pivotal role in sustaining growth momentum.
Despite the positive outlook, NESG’s report noted sectoral disparities, particularly in the electricity sector, which experienced slowed growth due to the incessant collapse of the national grid and vandalization of strategic power infrastructure across the country in 2024.
These persistent challenges limited industrial productivity and increased operational costs for businesses.
NESG noted “Also, the Electricity sector experienced slowed growth due to the incessant collapse of the national grid in 2024 and vandalisation of strategic power infrastructure across the country.”
Conversely, the services sector, which includes telecommunications, fintech, and trade, saw robust growth, driven by increased digital adoption and consumer spending. The agricultural sector also recorded moderate expansion, supported by government-backed initiatives aimed at boosting local food production and improving agricultural value chains.
Outlook for 2025
NESG projects a sustained positive growth trajectory, contingent on continued implementation of structural reforms and strategic investment in key sectors. However, it warned that inflationary pressures, exchange rate volatility, and security concerns remain key downside risks that could hinder economic stability.
The group noted “The government’s bold reforms are yielding results, albeit sub optimal and insufficient to sustain economic growth over the medium term. These reforms, such as the removal of fuel subsidies, exchange rate harmonisation, and other complementary measures aimed at addressing the structural bottlenecks, are found to favourably impact the performance of key sectors in the year.”
The group recommended further strengthening of power sector reforms, addressing forex market inefficiencies, and ensuring policy consistency to sustain economic gains in 2025.
