Nigeria’s economy has bucked a global trend and has successfully exited recession in the fourth quarter of 2020.
According to data from the country’s National Bureau of Statistics, GDP increased by 0.11% in the period October-December, supported primarily by growth in agriculture and telecommunications, which expanded by 3.4% and 17.6% respectively.
While increased global oil prices contributed to the growth, the figures also demonstrate the increasing importance of the non-crude sector for Africa’s most populous nation and the diversification of the country’s economy. Analysts note that the figures may indicate a sustained period of faster growth, as the world watches on to see which countries achieve a V-shaped recovery following the pandemic.
Growth in domestic product was also supported by the country’s Economic Sustainability Plan, an ambitious set of policies announced by President Buhari’s administration in June 2020 to address the immediate challenge of the COVID-19 pandemic.
Already, the focus on infrastructure and job creation in the agricultural and other labour-intensive sectors have borne fruit, and the Economic Sustainability Plan is soon to enter a new phase, with the installation of solar power in 5 million homes further boosting employment opportunities and access to power.
Femi Adesina, Special Advisor to President Buhari on Media, said “Infrastructure is where Buhari will leave his biggest footprints. Bridges. Rail. Airports. AKK gas pipeline. All to be delivered before the administration exits in 2023.”
In parallel, a new job creation initiative aimed at the country’s youth was launched in January, providing placements for over 700,000 unemployed young people.
Nigeria’s GDP numbers at the end of 2020 challenged the expectations of international organisations as well as global trends. Countries with larger stimulus packages, such as the USA and Japan, saw lower quarter on quarter growth than Nigeria over the period. In Europe, Spain and Germany also experienced unexpected increases of 0.4% and 0.1% respectively, while France’s GDP fell less than was forecast but remained negative.
This week also saw reports that corruption in Nigeria has fallen dramatically, with BudgIT, a civic advocacy organisation focused on budget and public finance issues, reporting the payment of public funds into personal accounts has declined by 94.75 percent.
While the trend in Nigeria is no doubt positive, risks of further waves of infection and a slow vaccine roll-out threaten the country’s sustained recovery, and are difficult to mitigate. Nigeria’s National Agency for Food and Drug Administration and Control (NADFAC) recently approved the AztraZeneca vaccine for the country and has requested 10million doses from the World Health Organisation’s Covax programme. However, it is unclear when these vaccines will arrive and be rolled-out across Nigeria.