By Milcah Tanimu
The First Bank of Nigeria (FBN) foresees a positive economic growth trajectory for Nigeria in 2024, attributing it to the planned federal government expenditures, notably the allocation of over N9 trillion for capital projects. The bank outlined this outlook in its 2024 report titled “Current Realities and Prospects.”
Dr. Adesola Adeduntan, the CEO of First Bank Group, emphasized the significance of the anticipated government spending during the introductory address. He highlighted the early commencement of the year, marked by President Bola Tinubu signing the 2024 appropriation bill into law, allocating N9.9 trillion for capital expenditure.
Adeduntan expressed optimism, stating, “So by implication, we believe there will be significant spending that is planned that will allow and should create enough stimulus within the economy that allows significant and serious players to be able to tap into the growth and the aspirations of the government.”
Key Factors Driving Nigeria’s Growth in 2024
Dr. Biodun Adedipe, the Chief Consultant of B. Adedipe Associates Limited (BAA Consult), delivered the keynote address during the event. According to him, the expected growth in 2024 would be influenced by various factors, including Nigeria’s present dynamics such as a fast-rising population, rapid urbanization, increasing Internet penetration, inflation, current exchange rates, and interest rates, among other indicators.
Despite these factors, Adedipe urged key players in the Nigerian economy, particularly those associated with trade groups, to engage in policy advocacy. He emphasized the numerous benefits, especially for the private sector, which holds the largest contribution to the economy.
Background Information
The World Bank projects Nigeria’s economy to grow by 3.3% in 2024, citing recent reforms by President Tinubu as providing stability after a challenging year in 2023. In 2023, Nigeria faced economic challenges, including an 18-year high inflation rate of 28.2% and a significant depreciation of the naira’s value on the official window. In the third quarter, the GDP recorded a modest increase of 2.54%, up from 2.51% in the preceding quarter (April to June 2023).