July 14, 2024
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Nigeria’s Oil Sector Slump Ends, Sparks Economic Growth Beyond Forecasts

Nigeria’s economy defied expectations in the fourth quarter, surpassing forecasts as the oil sector emerged from a prolonged contraction spanning over three years.

Data from the National Bureau of Statistics (NBS) revealed that gross domestic product (GDP) surged by an annual rate of 3.46% during the three months ending in December 2023.

This marked a notable acceleration from the 2.54% growth recorded in the preceding quarter. Notably, this performance exceeded the median projection of 2.4% from a Bloomberg survey of six economists.

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The resurgence in economic activity, particularly in the oil sector, contributed significantly to this robust growth trajectory.

This unexpected expansion underscores the resilience of Nigeria’s economy, despite facing significant challenges such as volatility in global oil prices and the lingering impacts of the COVID-19 pandemic.

Analysts are cautiously optimistic about the outlook, with hopes that this momentum will be sustained and further bolstered by ongoing efforts to diversify the economy away from its heavy reliance on oil.

However, challenges remain, including the need for continued structural reforms and investment in key sectors to ensure sustainable and inclusive growth in the long term.

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