As Nigeria’s political landscape undergoes transitions, the economic performance under President Tinubu’s nine-month government tenure has come under scrutiny. Here’s a breakdown of key indicators highlighting the trajectory of the nation’s economy:
1. GDP Growth:
– The GDP growth trajectory showcases a positive trend, with rates increasing from 2.51% in Q2 2023 to 3.46% in Q4 2023, culminating in a full-year growth rate of 2.74% in 2023.
2. Inflation Rate:
– Inflationary pressures have been a cause for concern, escalating from 22.41% inherited in May 2023 to 31.70% by February 2024. Of note is the food inflation rate, surging from 24.82% to 37.92% during the nine-month period.
3. Foreign Exchange (₦/$):
– The Nigerian Naira witnessed significant devaluation, plummeting from $1/₦461.06 in May 2023 to ₦1,544.08 in February 2024, marking a substantial 235% depreciation against the USD.
4. Stock Market:
– Despite economic challenges, the stock market demonstrated resilience, recording a remarkable 121.8% market gain from May 2023 to February 2024.
5. PMI (Purchasing Manager’s Index):
– The PMI maintained a positive outlook, standing at 51.1 in February 2024 compared to 54.0 in May 2023. While signaling improvements in business conditions, there’s a noted decrease in confidence regarding future outlooks.
6. Foreign Reserves:
– Foreign reserves experienced a decline of approximately 4.30%, decreasing from $34.40 billion in May 2023 to $32.92 billion by February 2024.
7. Crude Oil Production:
– Noteworthy is the increase in crude oil production, rising from 1.19 million barrels per day (mbpd) in May 2023 to 1.32 mbpd by February 2024.
8. Crude Oil Price:
– The average oil price saw an uptick, climbing from $76.91 per barrel in May 2023 to $86.08 per barrel by February 2024.
Amidst these economic dynamics, Nigeria’s economic trajectory under the Tinubu administration reflects a mixed bag of successes and challenges. While certain sectors have shown resilience and growth, others grapple with inflationary pressures and currency devaluation. As the administration navigates these complexities, attention turns to policy interventions aimed at fostering sustainable economic stability and growth for the nation.
