Ngozi Okonjo-Iweala, the Director-General of the World Trade Organization (WTO), has highlighted a concerning trend in Nigeria’s economic performance, noting that the country’s Gross Domestic Product (GDP) growth rate has been steadily declining since 2014.
Speaking at the annual General Conference of the Nigerian Bar Association (NBA) on Sunday, Okonjo-Iweala emphasized that this downturn signals a decline in the economic well-being of the average Nigerian.
She contrasted this recent trend with the period between 2000 and 2014, a decade in which Nigeria experienced an average GDP growth rate of approximately 3.8%.
During this time, the country’s economic growth was strong enough to outpace its population growth, which was around 2.6% annually. This period of robust economic performance contributed significantly to improving the living standards of many Nigerians.
However, Okonjo-Iweala observed that the situation has drastically changed since 2014. The country has seen its GDP growth rate plummet to a negative 0.9%, indicating that the government has struggled to maintain the positive economic momentum achieved by previous administrations.
This reversal in economic fortunes has had a detrimental impact on the country’s development and the prosperity of its citizens.
“Many of the big problems the NBA is grappling with today has its root in Nigeria’s failure to sustain rate of economic growth and development that consistently outpaced the growth of our population.“
“We have had episodes of reforms and faster economic growth that was not merely a function of the price of oil. But we have been unable to consolidate and build on them and millions of our compatriots have paid the price in terms of diminished job prospects and human well-being.”
“For example, in the decade between 2000 and 2014, we have an average GDP growth rate of 3.8% well above our population growth rate of 2.6% per annum, meaning that people were on average truly improving their standard of living.”
“During the following decade, average annual GDP per capita has been negative around minus 0.9% meaning people were worse off because we were not able to sustain prior positive growth momentum,” Okonjo-Iweala added.
In her remarks, Okonjo-Iweala stressed the importance of consistent and sound economic policies, regardless of the political party or administration in power.
She argued that for Nigeria to achieve sustainable development and improve the living conditions of its people, it is crucial to adopt and maintain policies that promote economic growth and stability across successive governments.