Nigeria’s GDP grew by 3.84 percent in Q4 2024, but millions still live in poverty due to failing sub-sectors such as water, electricity, transportation, and tourism. With minimal contributions to the GDP, these sectors endanger livelihoods and inhibit economic progress, necessitating urgent government intervention to create sustainable growth and improve living standards.
Nigeria’s economic growth, marked by a GDP increase of 3.84 percent in Q4 2024, masks a troubling reality. Despite this growth, millions of Nigerians endure poverty, particularly as critical sectors like water supply, electricity, transportation, and tourism falter. These struggling industries significantly affect daily life, contributing minimally to the economy and leaving households in distress.
The Water Supply, Sewerage, and Waste Management sector is notably underperforming, contributing only 0.18 percent to GDP in Q4 2024. Access to clean water remains a severe challenge, with only 10 percent of Lagos residents connected to piped water. Moreover, the World Bank highlights that less than 1 percent of Nigeria’s budget is allocated to water, exacerbating public health crises caused by waterborne diseases.
The electricity and gas sector, crucial for industrial growth, saw its contribution fall to 0.49 percent of GDP. Nigeria faces an ongoing power crisis, resulting in an annual economic loss of approximately $29 billion. With over 80 million citizens lacking electricity, manufacturers rely heavily on expensive diesel generators, indicating urgent restructuring is necessary to enhance energy reliability.
The transportation sector also struggles, with its GDP contribution declining to 1.10 percent. Rampant fuel prices and poor infrastructure, where 70 percent of roads are in disrepair, hinder trade and logistics. The inadequate railway system further complicates transportation, contributing to inefficiency and significant economic losses exceeding $10 billion annually.
Tourism and hospitality, another sector with vast potential, contributed a stagnant 0.79 percent to GDP. Nigeria’s tourism revenue pales in comparison to countries like Kenya, severely impacted by poor security, high operational costs, and weak domestic tourism. Without immediate investment in security and tourism infrastructure, Nigeria risks missing out on a multi-billion dollar market.
Despite increases in GDP growth, many Nigerians do not experience improvements in their living conditions. An economist has indicated that simply focusing on growth numbers is inadequate if they do not translate into better lives for citizens. Moreover, the Minister of Communications, Innovation, and Digital Economy expresses optimism about Nigeria reaching a trillion-dollar economy through the ICT sector, but acknowledges the need for inclusive growth across all sectors.
Addressing the failures in these sectors necessitates immediate government action. An investment in a Water Infrastructure Emergency Plan is imperative to ensure universal access to clean water. The electricity sector demands structural reforms, emphasizing renewable energy sources to mitigate dependence on diesel. Furthermore, allocating significant funds for transportation and revitalizing tourism through improved security and streamlined regulations are essential for sustainable development.
In conclusion, Nigeria’s economic discourse predominantly fixates on oil and banking, often overlooking fundamental industries crucial for daily existence. The lack of progress in sectors such as water, electricity, transport, and tourism signifies a broader humanitarian crisis. Without decisive action, millions may remain ensnared in poverty, jeopardizing Nigeria’s economic future.
Nigeria’s GDP growth does not reflect the pressing struggles within key sectors that critically impact citizens’ quality of life. Addressing the underperformance of water supply, electricity, transportation, and tourism is essential to foster meaningful economic development and alleviate poverty. The government must prioritize investments and reforms to ensure the benefits of growth are widely shared among the population.
Original Source: businessday.ng
