Nigeria’s Economic Outlook for 2024: Growth Drivers and Challenges

Being the sixth most populated country in the world, Nigeria has a very interesting economic story considering its potential and the rewards of its location. Still, the country has been in a state of inflation for years now, and things are not looking so great in 2024 either.

For years, it has been considered the second-largest economy in Africa, so what exactly happened? Are there any prospective signs of recovery in 2024? Read on to find out more in our complete guide on Nigeria’s economic outlook for 2024.

Nigeria’s Economic Background

If you’re curious to know more about the background of the state’s economy, we’ll take you back to the 1950s when natural oil reserves were first discovered. As you might have guessed, it quickly led to Nigeria joining the scene of oil export big leagues with the potential to even get on the same stage as China or Saudi Arabia.

However, the country never achieved that status and that’s a huge piece of the reason why we haven’t received any good news regarding Nigeria economic outlook 2024. More than 40% of the state is now living below the poverty line, which is simply too much for once Africa’s second-largest economy. 

Overcrowding and population in the big cities caused by oil exploitation in the hope of a better life also didn’t help the economy of urban areas, while things are even worse in unpopulated zones.

Nigeria’s Economy in 2024 Through Numbers

To understand the economic growth Nigeria potential, we need to address some vital numbers. For instance, overall inflation in 2024 has reached 30% which is the highest number in the past few years. On top of that, food inflation got even worse, and it’s all due to the government un-pegging the value of the Nigerian Naira from USD.

While it made some sense from an economic standpoint, making foreign investment more attractive, it backfired when it came to the local economy. So, the price of food is now higher than ever, and nearly 40% of the population is now living in poverty.

Add to that the fact that nearly 50% of Nigeria’s population are children under the age of 18, and you’ve got a very bad economic situation at hand. 

Reasons Behind the Country’s Slow Economic Growth

One of the main challenges Nigeria economy is facing is turning its vast oil reserves into a profitable economy and becoming an oil giant. Things were looking a lot brighter for the locals during the 1970s when the oil exploitation just started, and Nigeria looked like a country with a clear economic path ahead of it.

However, unstable governments have slowed down the oil-exporting potential, while other vital economic areas like agriculture were left behind and profits were lowered. The main reason for the current downfall is the drop in oil prices, considering that nearly two-thirds of the country’s economy relies on it.

Because of that, the country has been through recession numerous times, despite a solid-looking GDP growth which appears to be constant in the past few years. Still, it’s said that the government’s policy of fuel subsidies simply caused turmoil and made the economic situation even worse. While it made fuel more affordable for the citizens, it badly reflects on already poor economic situation of the government, and inflation is a direct consequence of those subsidies.

Modern-Age Economy in Nigeria

Considering that Nigeria is a very young country with 50% of its population being under the age of 18, modern-day economic trends are slowly starting to emerge. People who see investment opportunities Nigeria are starting to put more and more funds forth to the development of modern technologies.

Programming, social media, and freelancing are just some of the areas in which young Nigerian citizens can educate themselves and start their own businesses regardless of the general economic state in the country. We’ve also seen the rise of digital trends including even online gambling which is not properly regulated and lots of offshore sites are becoming available.

Players can easily download the data free app to access both local and international sporting events. It’s not just about gambling and sports betting for real money since Nigerians can now also place their daily fantasy sports picks which is all a testament to the country keeping up with major trends.

These industries also hold great investment value and hold lots of prospective job spots opening for online workers in Nigeria, and this type of income could positively affect the country’s economic state.

Final Thoughts

Well, we hope that our guide helped you realize and understand the current economic outlook in Nigeria and further explain the economic situation of the state. While things are not looking as bright as ever, modern technologies and a big capital that the state has in young people could lead to innovation and hopefully provide a new source of income so the government won’t need to rely so heavily on oil exports alone.

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