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Hope rises for poor Nigerians as economy outpaces population growth

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NIGERIA’s Gross Domestic Product, (GDP) growth recorded 3.98 per cent growth in the fourth quarter of 2021, according to a GDP report released by the National Bureau of Statistics (NBS) on Thursday.

This is the highest ever GDP growth since the coming of President Muhammadu Buhari’s administration in 2015.

But more importantly, the number outpaces  Nigeria’s population growth of 2.5 per cent. When GDP growth is greater than population growth, the economy is growing and many people are being taken out of poverty.

A Professor of Economics Ken Ife explained that it was an indication that the programmes and investments of the Federal Government were beginning to make impact on the lives of Nigerians.

Nigeria is world’s poverty capital, with 105 million people in extreme penury, according to the World Poverty Clock.

A person is said to live in extreme poverty if their income is below $1.90.

Economists believe Nigeria’s growth should be sustained over a long period to be sufficient enough to take the majority of those in extreme poverty out of the trap.

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According to the GDP report, the GDP also posted a strong recovery of 3.98 per cent in the fourth quarter of 2021 — but lower than the 4.03 per cent in the third quarter.

“Nigeria Gross Domestic Product (GDP) grew by 3.98 per cent(year-on-year) in real terms in the fourth quarter of 2021, showing a sustained positive growth for the fifth quarter since the recession witnessed in 2020 when output contracted by -6.10 per cent and -3.62 per cent in Q2 and Q3 of 2020 under the Covid pandemic,” the report read.

“The fourth quarter growth indicates a steady economic recovery accounting for annual growth of 3.40% in 2021.

 

“The Q4 2021 growth rate was higher than the 0.11% growth rate recorded in Q4 2020 by 3.87 per cent points and lower than 4.03% recorded in Q3 2021 by 0.05% points. Nevertheless, quarter on quarter, real GDP grew at 9.63% in Q4 2021 compared to Q3 2021, reflecting a higher economic activity than the preceding quarter.”

The report showed that in Q4, aggregate GDP stood at N49.27 trillion in nominal terms.

“This performance is higher when compared to the fourth quarter of 2020 which recorded aggregate GDP of N43,564,006.29 million, indicating a year-on-year nominal growth rate of 13.11%. The nominal GDP growth rate in Q4 2021 was higher relative to 10.07% growth recorded in the fourth quarter of 2020 but lower compared to 15.41% growth recorded in the preceding quarter,” it added.

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“The 2021 annual nominal growth stood at 13.92 per cebt. For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors.”

 

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