Nigeria’s GDP grew by 3.84% in Q4 2024, yet critical sub-sectors fail to support lasting poverty alleviation. Water supply, electricity, transportation, and tourism remain underperforming, inhibiting economic progress for millions. Urgent reforms and investments are necessary to ensure growth translates into real improvement for the populace.
Nigeria’s economy experienced a growth rate of 3.84% in Q4 2024, as reported by the National Bureau of Statistics (NBS). However, this growth mask serious issues as millions continue to live in poverty due to the underperformance of critical sub-sectors. Essential services such as water supply, electricity, transportation, and tourism are failing, leading to widespread distress among households and businesses.
The water supply, sewerage, and waste management sectors are particularly lacking, contributing only 0.18% to GDP in Q4 2024. Despite Nigeria’s abundant water resources, many citizens lack access to clean water. According to UNICEF, just 10% of Lagos residents have access to piped water, while over 60 million Nigerians resort to open defecation due to inadequate sewage systems.
The electricity and gas sector, failing to support industrial growth, contributed only 0.49% to GDP in Q4 2024, a decrease from the previous year. Nigeria suffers from a power crisis, with the World Bank estimating an annual loss of $29 billion due to unreliable electricity. Many Nigerians live without electricity, while manufacturers face huge operational costs relying on diesel generators.
Transportation also remains a significant issue, with the sector’s contribution to GDP dropping to 1.10% in Q4 2024. Poor road conditions and a lack of rail services complicate the movement of goods and people. The Federal Ministry of Works and Housing found that 70% of roads are in poor condition, imposing high transportation costs, which disproportionately affect farmers and rural residents.
The tourism and hospitality sector, poised for growth, remained stagnant, contributing just 0.79% to GDP in Q4 2024. Nigeria earned only $400 million from tourism in 2023, while other African countries thrived. High operational costs and security concerns deter international visitors, while 65% of Nigerians living below the poverty line hampers domestic tourism.
Despite positive GDP figures, many Nigerians see little improvement in their lives. Economic growth rates alone do not signify progress in alleviating poverty levels. Focus should be shifted towards enhancing the quality of growth that fundamentally supports the populace.
To combat these issues, Nigeria must prioritize investments in failing sectors. Initiatives such as a Water Infrastructure Emergency Plan and structural reforms in the electricity sector are critical. Repairing roads and expanding rail networks will require significant funding, while improving tourism prospects necessitates enhanced security and streamlined regulations.
Overall, the economic crisis faced by Nigeria transcends mere statistics; it is a humanitarian emergency. The neglect of essential sectors threatens to leave millions trapped in poverty, and the time for decisive action is urgent to ensure that growth is felt at all levels of society.
Nigeria’s economic growth is overshadowed by severe challenges in essential sub-sectors, which continue to leave millions impoverished. To achieve sustainable development, the government must urgently address failures in water supply, electricity, transportation, and tourism. Without significant reforms and investments, the economic gains will remain superficial and disconnected from the realities faced by the Nigerian populace.
Original Source: businessday.ng
