PwC projects moderate economic growth for Nigeria amid fiscal challenges, inflationary pressures

Professional service network, PricewaterhouseCoopers (PwC), on Monday projected a marginal GDP growth of 2.9 per cent for Nigeria in 2024.

In its latest economic outlook report, it said the growth is expected despite the backdrop of sustained policy reforms, which may face limitations due to elevated economic pressures.

Data from the National Bureau of Statistics (NBS) shows Nigeria’s inflation rate surged to 33.9 percent in May 2024, up from 33.6 per cent in April 2024.

“PwC projects a marginal decline in inflation to 29.5 per cent year-ended, balancing the effects of reforms, policy actions, external pressures and food prices; particularly in the second half of the year,” it read.

The outlook highlighted three core areas of focus for the government, including structured and focused policy, policy flexibility, and mitigation strategies.

PwC emphasised the need for Nigeria to prioritise macroeconomic stability by addressing security, social, and inflationary pressures.

The report suggested mobilising capital to drive growth through market-focused policies and promoting investment.

Additionally, it urged the government to make strategic sectoral investments aimed at export enhancement, domestic substitution, and job creation.

PwC noted that maintaining fiscal prudence by optimising spending on capital projects, rationalising public service expenditures, and improving revenue diversification and collection efficiency is essential.

The projection comes amid ongoing efforts to control inflation, with the Monetary Policy Rate (MPR) having seen significant adjustments over the past year.

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For businesses, PwC advised revisiting and clarifying strategies to win in future economic scenarios, focusing on differentiating capabilities, and engaging in cultural evolution to build organisational strength.

Also, it suggested revisiting cost structures and reimagining operating models to enhance resilience and leverage technological advancements.