Nigeria's GDP Growth To Remain Sluggish In 2020 - Nonso Obikili


Monday, January 27, 2020 / 3:49 PM / Ottoabasi Abasiekong for WebTV / Header Image Credit: WebTV


Nigeria's Gross Domestic Product (GDP) growth rate in 2020 will remain sluggish in 2020, the Chief Economist of BusinessDay Newspapers, Dr. Nonso Obikili, disclosed this as a keynote speaker at the Lagos Chamber of Commerce and Industry (LCCI) Business and Economic seminar.


He said the projection of Nigeria's growth rate between 2 to 2.5% by international economic agencies, analysts groups and research/investment companies meant the country's growth after recovery would continue at a slow pace this year (see table 1 below).


Dr. Obikili decried the fact that Nigeria remained over-reliant on crude oil as its major source of earnings and called for strategies from the government to diversify its revenue base.


The economist also made a strong case for the Federal Government to review the exclusive list in the constitution.


According to him unbundling some of the roles managed by the FG from solid minerals, ports management, security to the waterways will unlock the economy and open it up to attract more investments.


He also believed that there must be conscious efforts to address the lax fiscal policy framework in the country, which is, in a way inhibiting growth.


Dr. Obikili highlighted the following issues which include;

  • Ballooning public expenditure

  • Continuing expansion in government spending and deficits

  • Rising domestic debt during the years of the crude oil boom

  • The Depletion of fiscal buffers (excess crude account) during the crude oil boom years.


Despite the sluggish growth Dr. Obikili tipped the Telecommunications sector as one of the sectors that will drive growth in the economy.


He noted that the Economic Recovery and Growth Plan (ERGP) projection of 7% was not realistic at the moment in 2020, as the current growth rate of 2.28% was below the population rate that is edging to 3%.


Table 1 Nigeria's Economic Growth 2020 Projections


GDP Growth Projection For 2020

International Monetary Fund (IMF)


World Bank


Financial Derivatives Company (FDC)


FBN Quest


Africa Development Bank (AfDB)


Source: IMF, World Bank, FDC, FBN Quest, AfDB

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