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On the Face of It, Nigeria’s Economic Recovery is on the Right Track

The country’s GDP grew 5% from April to June, according to official data last week (Aug. 26), making it Nigeria’s best quarterly performance since the closing months of 2014. The easing of Covid-19 restrictions, and the reopening of land borders with neighboring Benin after 16 months, contributed to retail and other domestic trade growing by 22.5%, according to Ibukunoluwa Omoyeni, an analyst at Vetiva Capital, a Lagos-based firm. Transportation and storage also contributed to the bump with nearly 77% year-on-year growth. However, this year’s second quarter is only impressive because it is being compared to a 6.1% slump in the same period in 2020. Omoyeni says growth of up to 8% aided by better performance in other sectors is needed to restore Nigeria to its pre-pandemic growth path.