Nigeria's economic landscape is undergoing significant scrutiny as recent reports reveal contrasting figures regarding its Gross Domestic Product (GDP). According to a December 2024 analysis by World Economics, Nigeria's GDP by Purchasing Power Parity (PPP) has reached an impressive $2.4 trillion, ranking it 19th globally. This figure is 89% larger than the official estimate of $1.277 trillion as of the end of 2023 [d3bf0e28].
Despite this optimistic outlook, the country faces severe economic challenges, including a declining official GDP, which has dropped to $253 billion in 2024, primarily due to a weakened naira and rising inflation [0193d64a]. The contrasting figures highlight the complexities of Nigeria's economy, where the informal sector plays a significant role, often underrepresented in traditional GDP calculations. Bismarck Rewane, CEO of Financial Derivatives Company, criticized the $2.4 trillion figure as unrealistic, suggesting it implies a tenfold increase from previous estimates. He emphasized the need for consistent methodologies in GDP calculations to ensure accuracy [d3bf0e28].
The 'Africa Country Instability Risk Index' report from SBM Intelligence also underscores Nigeria's economic struggles, noting a significant decline in its economic ranking due to inflation and currency devaluation. The report indicates that Nigeria's score changed by -6, placing it alongside Namibia and Zimbabwe, while Seychelles and Botswana experienced even larger declines [0193d64a].
As Nigeria navigates these economic challenges, the National Bureau of Statistics (NBS) is set to release its debt stock report for the second quarter of 2024, revealing a public debt stock of N121.67 trillion, with Lagos State holding the highest domestic debt [d9803f98]. Furthermore, the NBS plans to rebase the country's GDP and Consumer Price Index (CPI) in November 2024, aiming to align economic indicators with current realities [d9803f98].
As the economic outlook remains uncertain, analysts and policymakers are closely monitoring these developments to address the pressing issues of inflation, currency stability, and overall economic growth in Nigeria.