Nigeria’s Economic Growth Projected to Strengthen in Q1 2024, Analysts Say

Nigeria’s Economic Growth Projected to Strengthen in Q1 2024, Analysts Say

As Nigeria prepares for the release of its Gross Domestic Product (GDP) report for the first quarter of 2024, analysts are optimistic about the country’s economic growth prospects. According to experts, the expansion in the monthly Purchasing Managers’ Index (PMI) suggests that the economy is on track for a stronger performance compared to the same period last year.

The PMI, which measures the performance of the private sector, saw a significant improvement in January, with the headline index reaching 54.5, the highest in 13 months. While the index dipped slightly in February and March, it remained above the 50.0 threshold, indicating an overall improvement in business conditions.

Analysts attribute this positive outlook to a variety of factors, including the resilience of the manufacturing and production sectors in the face of economic challenges. Bolade Agboola, an energy and consumer growth analyst, noted that the non-oil sector is expected to drive growth, supported by improvements in oil production.

Despite concerns about inflation and currency devaluation, experts remain optimistic about Nigeria’s economic prospects. Analysts at Vetiva Research expect the economy to expand further in Q1, driven by foreign exchange and energy reforms in the non-oil sector. Similarly, Damilare Asimiyu, a macroeconomic analyst, projects growth to be around 2.93 percent year-on-year, with both the oil and non-oil sectors contributing to the positive trend.

While challenges remain, such as rising inflation and sluggish growth, analysts believe that Nigeria is on track to maintain its positive growth trajectory in the coming months. With the non-oil sector leading the way and the oil sector showing signs of recovery, the outlook for Nigeria’s economy in Q1 2024 looks promising.