Hope grows for poor Nigerians as economy outpaces population growth

NIGERIA’s gross domestic product (GDP) growth recorded a growth of 3.98% in the fourth quarter of 2021, according to a GDP report released Thursday by the National Bureau of Statistics (NBS).

This is the highest GDP growth on record since the arrival of President Muhammadu Buhari’s administration in 2015.

But more importantly, the number exceeds Nigeria’s population growth of 2.5%. When GDP growth exceeds population growth, the economy grows and many people are lifted out of poverty.

An economics professor, Ken Ife, said this indicated that federal government programs and investments were beginning to impact the lives of Nigerians.

Nigeria is the poverty capital of the world, with 105 million people living in extreme poverty, according to the World Poverty Clock.

A person is said to live in extreme poverty if their income is less than $1.90.

Economists believe that Nigeria’s growth would need to be sustained over a long period to be sufficient to lift the majority of people living in extreme poverty out of the trap.

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According to the GDP report, GDP also showed a strong recovery of 3.98% in the fourth quarter of 2021, but less than the 4.03% in the third quarter.

“Nigeria’s gross domestic product (GDP) grew by 3.98% (year-on-year) in real terms in the fourth quarter of 2021, showing sustained positive growth in the fifth quarter since the recession seen in 2020, when output s contracted by -6.10% and -3.62% in the second and third quarters of 2020 under the Covid pandemic,” the report read.

“Fourth quarter growth indicates a steady economic recovery representing annual growth of 3.40% in 2021.

“The growth rate for the fourth quarter of 2021 was higher than the growth rate of 0.11% recorded in the fourth quarter of 2020 by 3.87 percentage points and lower than the 4.03% recorded in the third quarter of 2021 by 0.05 percentage points. Nevertheless, quarter over quarter, real GDP increased by 9.63% in Q4 2021 compared to Q3 2021, reflecting higher economic activity than in the previous quarter.”

The report showed that in the fourth quarter, the overall GDP stood at 49.27 trillion naira in nominal terms.

“This performance is superior to that of the fourth quarter of 2020 which recorded an overall GDP of 43,564,006.29 million naira, indicating a nominal growth rate of 13.11% year-on-year. The nominal GDP growth rate in the fourth quarter of 2021 was higher compared to the growth of 10.07% recorded in the fourth quarter of 2020, but lower compared to the growth of 15.41% recorded in the previous quarter. he added.

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“Annual nominal growth in 2021 was 13.92 percent. For clarity, the Nigerian economy has been broadly categorized into oil and non-oil sectors.

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