By Tony Obiechina, Abuja

The Nigerian Economic Summit Group (NESG) has painted a gloomy picture of the Nigerian economy, saying that businesses and citizens have now been put under massive pressure as a result of rising costs, inflation, and a struggling economy.The Chairman of NESG, Mr Niyi Yusuf who stated this at a world Press conference ahead of the 30th Nigeran Economic Summit in Abuja on Friday said “In 2023, increased cost of living pushed an estimated 104 million people into poverty (46% poverty rate) from 100 million”.

The NESG Chairman who was represented by the CEO of the Group, Dr Tayo Aduloju one of Nigeria’s pressing concerns is translating economic growth into improved lives and livelihood of all its citizens. He disclosed that in Q2-2024 Nigeria’s economy record a fast GDP growth at 3.2%, compared to 2.5% in Q2-2023. Agricultural grew at 1.4% in Q2-2024 from 1.5% in Q2-2023, while industries grew by 3.53% in Q2-2024 from -1.9% in Q2-2023. According to him, the Services sector recorded a growth of 3.8% in Q2-2024 falling down from to 4.4% in Q2-2023.”Nigeria’s weak economic performance is reflected in declining living standards, with per capita income falling from US$2,162.60 in 2022 to US$1,645.76 in 2023. The rising cost of a healthy diet likely worsened the multidimensional poverty rate, which was 62.9% in 2022. Nigeria also ranks low on the Human Capital Development Index (HCDI), with a score of 0.55, placing it 161st out of 191 countries.His words, “Our businesses and citizens are under massive pressure from rising costs, inflation, and a struggling economy. In 2023, increased cost of living pushed an estimated 104 million people into poverty (46% poverty rate) from 100 million in 2022. “These numbers are compounded by food insecurity, as people suffering from acute hunger in Nigeria is projected to increase to 26.5 million in the June-August 2024 lean season, from a staggering18.6 million people at the end of 2023 and over 38% of under-five children suffering from chronic malnutrition.”We are also contending with significant security challenges, exacerbated by the devastating effects of climate change, leading to humanitarian crises that have displaced millions. In 2021, the Internally Displaced Persons (IDP) Index recorded 3.2 million IDPs in Nigeria, with an additional 1 million displaced due to flooding that has destroyed lives, livelihoods, and food security.”These are indeed difficult times for our nation. Global instability, regional volatility, and national socioeconomic uncertainty demand that we take bold, decisive steps”.Niyi Yusuf stressed that the theme for this year’s Summit, “Collaborative Action for Growth, Competitiveness, and Stability,” emphasizes that “we must embrace a business-unusual approach, innovative governance, and transformational political leadership. It is only through collaborative action between government, business, and civil society that we can unlock Nigeria’s vast potential”.The NESG helmsman however noted that “Despite these challenges, the potential of our country is clear. Around the world, the same question is being asked: Can Nigeria reach and exceed its potential? If so, how? And if not now, when? Though we face tough times, there are also incredible opportunities ahead”.He highlighted that the 30th Nigerian Economic Summit offers a platform for exploring these opportunities, adding that “together, we can shape Nigeria’s future toward shared and sustainable prosperity”.However, he predicted that in the next five years, Nigeria has the potential to become a leading industrializing nation in Africa, stressing that “We can reform our political, policy, and regulatory systems, unlock local content development, foster sub-national economic diversification, and create a globally competitive business environment. By doing so, we will improve the lives of millions of Nigerians, reduce poverty, and increase foreign direct investment (FDI) inflows into the continent.