Nigeria’s gross domestic product grew 3.46% in the third quarter, exceeding expectations, as the services sector grew at the fastest pace in almost two years.
The data represents a reprieve for President Bola Tinubu, who has struggled to stabilize the country’s economy after cutting government fuel subsidies that many Nigerians had relied on. Tinubu said he welcomed the report, adding that more work would be needed for Nigerians to “feel the positive impact in their pockets and experience better living standards.”
Rising fuel prices have exacerbated already high inflation, sparking mass protests. They have also forced thousands of people to find other ways to get around: more than 100,000 cars that used to run on gasoline have been converted to run on natural gas.
Sources: The Financial Times, Bloomberg
A World Bank economist recently wrote in the Financial Times that Nigeria “may be on the verge of reversing its economic fortunes,” arguing that Tinubu’s sweeping economic measures, while imperfect, “must succeed..“The reprioritization around non-oil sources of growth, such as the telecommunications and financial services sectors, indicated an “expanding, more stable economic base and a potential divergence from Nigeria’s dependence on oil,” an Oxford Economics economist wrote in a research note, adding but that “oil production is expected to remain a cornerstone of the West African economy.” Tinubu’s 2025 budget, to be presented on Wednesday, includes increased crude oil production and a price of $75 per barrel, which could further boost growth, Bloomberg wrote.
Sources: Associated Press, Africanews
Nigeria is increasingly turning to natural gas — the country has the continent’s largest reserves — to power vehicles in the absence of affordable gasoline, The Associated Press reported. The move could ultimately cut transportation costs by almost 50%, authorities say, following the country’s worst cost-of-living crisis in a generation fueled by high gasoline prices. But only 13 of Nigeria’s 36 states have natural gas filling stations, and many people are forced to walk to work. While the government emphasized the long-term environmental benefits, scaling up natural gas in the short term will require significant investments in infrastructure and public awareness, Africanews wrote.
