Economy
NESG Forecasts 3.5% GDP Growth, 21.5% Inflation for Nigeria in 2024
By Adedapo Adesanya
The Nigerian Economic Summit Group (NESG) on Wednesday said that Nigeria’s Gross Domestic Product would grow at 3.50 per cent in 2024, with inflation projected to average 21.5 per cent in the year
The group made the forecasts in its 2024 macroeconomic outlook report titled Economic Transformation Roadmap: Medium Term Policy Priorities, launched in Lagos on Wednesday, noting that various reform programmes initiated by the Bola Tinubu-led government are expected to trigger an uptick in economic growth as strains on investment are addressed and low productivity in critical sectors resolved.
It said the services sector will remain the economy’s key driver, while the anticipated rebound of the country’s oil sector will push stronger real GDP growth in 2024.
As of the third quarter of 2023, Nigeria’s economy recorded a growth of 2.54 per cent, showing a slight uptick from the 2.51 per cent observed in the second quarter.
During this period, the oil sector experienced a moderated contraction, and the impact of governmental reforms targeting output enhancement had yet to materialise.
“Based on the optimistic view of a comprehensive overhaul of the country’s economic system and stable outlook, Nigeria is expected to experience inflows of investments into key sectors.
“This will result in improved sectoral productivity and generate significant jobs that would moderate or slow down the growth of unemployment in Nigeria,” the NESG said.
The group also projected the moderation of the inflation rate to 21.5 per cent from an estimated average of 24.5 per cent in 2023.
The latest data from the National Bureau of Statistics shows Nigeria’s annual inflation rate rose to 28.92 per cent in December 2023 from 28.20 per cent in November.
The NESG said the country will experience moderate inflationary pressure this year, which aligns with that put forward by the Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, who put his target at 21.4 per cent.
“The slowdown in inflationary pressure will be driven by lower deficit monetisation structurally, relative exchange rate stability, and other heightened monetary measures by the Central Bank. In addition, food inflation will remain the fundamental driver of inflation due to increased cost of credit, insecurity, and internal displacement.
“The removal of fuel subsidies will continue to increase core inflation, primarily through high transport and energy costs,” it said.
It also projected that the rate of unemployment will slow down while anticipating enhanced productivity and output in labour-intensive sectors such as construction, agriculture, trade, and manufacturing sectors.
“The rate is anticipated to ascend to around 5.0 per cent, while the poverty headcount is expected to approach 41.5 per cent due to improved performance in these job-intensive sectors,” NESG said in its outlook.
With a population growth rate estimated at 3.2 per cent, this trajectory is set to bolster the overall impact of economic growth on real per capita income.
It said the combination of these factors, alongside a consistent policy environment, is expected to strengthen foreign capital inflows in 2024.
The country is positioned to sustain a trade surplus, increase foreign reserves, and experience diminishing exchange rate pressures throughout the year.
The NESG said with diminished political risks and enhanced returns on investments, the likelihood of attracting confident foreign investors and activating funds previously inactive among local investors appears promising.
By Adedapo Adesanya
The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, has said ongoing reforms and strategic policy implementation in Nigeria’s petroleum sector are driving significant investments and strengthening the country’s position as a leading energy destination in Africa.
Mr Lokpobiri stated this at the Management Retreat of the Ministry of Petroleum Resources, where he stressed the need for improved institutional performance and accountability to sustain growth in the sector.
According to the Minister, the federal government has deliberately pursued far-reaching reforms aimed at creating a stable and investor-friendly environment capable of attracting local and foreign capital into the oil and gas industry.
“From far-reaching institutional reforms to the effective implementation of strategic policies, we have remained committed to carrying all stakeholders along, fostering a conducive environment for investments to flourish,” Mr Lokpobiri said.
“As a result, our petroleum sector has witnessed significant investments that continue to strengthen Nigeria’s position as a leading energy destination.”
The Minister noted that the gains recorded in the sector were the product of collective efforts across the Ministry and its agencies, commending staff for their dedication and professionalism.
“The Management Retreat of the Ministry of Petroleum Resources provided an important platform to reiterate that these accomplishments would not have been possible without the collective dedication, professionalism and teamwork of every staff member across the Ministry and its agencies,” he stated.
Mr Lokpobiri said the retreat, themed Driving Institutional Performance and Accountability in the Petroleum Sector for Sustainable National Development, underscored the importance of continuous improvement in service delivery and operational efficiency.
Drawing lessons from the theme, he urged officials of the Ministry and regulatory agencies to intensify efforts toward enhancing institutional effectiveness and strengthening governance frameworks.
“I encouraged that we must redouble our efforts, continuously improve the quality of our services, and strengthen institutional performance,” he said.
The Minister further emphasised the continued relevance of fossil fuels in the global energy mix, stressing that Nigeria must leverage its hydrocarbon resources to drive economic growth while ensuring citizens benefit from ongoing reforms.
“With fossil fuel as the dominant source of energy, we must ensure that Nigerians experience the benefits of our progress and that Nigeria remains the preferred investment destination in Africa and a globally competitive hub for energy investments,” Mr Lokpobiri added.
By Aduragbemi Omiyale
The N3.2 billion rights issue of Universal Insurance Plc has been extended by almost two weeks after securing regulatory approval.
The exercise was earlier scheduled to close on June 10, 2026, but will now close on Monday, June 22, 2026.
The extension was granted by the Securities and Exchange Commission (SEC) after a request from the underwriting organisation.
In the rights issue, Universal Insurance is offering to shareholders 2,666,666,667 ordinary shares of 50 Kobo each at N1.20 per share on the basis of one new ordinary share for every existing six ordinary shares held as of the close of business on Monday, March 30, 2026.
Subscription for the acquisition of the company’s extra shares opened on Wednesday, May 13, 2026.
The extension gives investors more time to increase their stake in the insurance firm, which intends to use proceeds from the exercise to boost its capital base, as mandated by the National Insurance Commission (NAICOM).
Insurance companies operating in Nigeria have been given till July 31, 2026, to shore up their capital base or pack up. Operators can also explore a merger if they wish.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited opened its doors to market participants in four days last week as a result of a public holiday observed on Friday, June 12, for 2026 Democracy Day in the country.
In the week, investors bought and sold 4.964 billion shares worth N207.521 billion in 235,966 deals, as against the 3.966 billion shares valued at N175.659 billion that exchanged hands in 343,587 deals a week earlier.
Analysis showed that the financial services industry led the activity chart with 4.116 billion shares valued at N84.607 billion in 96,165 deals, contributing 82.92 per cent and 40.77 per cent to the total trading volume and value, respectively.
The services sector transacted 232.479 million shares worth N4.955 billion in 17,614 deals, while the industrial goods segment exchanged 144.988 million shares worth N39.077 billion in 24,775 deals.
Sterling Holdings, FCMB, and Access Holdings were the most traded stocks with 2.883 billion units sold for N36.188 billion in 15,533 deals, accounting for 58.09 per cent and 17.44 per cent of the total trading volume and value, respectively.
A total of 40 equities appreciated in the week versus 23 equities in the previous week, 53 equities depreciated versus 65 equities a week earlier, and 53 equities remained unchanged versus 58 equities in the preceding week.
ABC Transport was the best-performing equity for the week after it gained 25.60 per cent to trade at N7.80, Consolidated Hallmark appreciated by 23.13 per cent to N8.25, Abbey Mortgage Bank rose by 21.93 per cent to N11.40, Infinity Trust Mortgage Bank grew by 20.32 per cent to N11.25, and Austin Laz soared by 15.16 per cent to N4.33.
The worst-performing equity last week was Fidson Healthcare because of its 25.86 per cent loss, closing at N101.20. Neimeth declined by 19.14 per cent to N8.55, Union Homes REIT shed 17.36 per cent to close at N70.00, SUNU Assurances slipped by 11.38 per cent to N3.97, and Unilever Nigeria dropped 10.26 per cent to trade at N140.00.
As for the index movement, the All-Share Index (ASI) and the market capitalisation chalked up 0.88 per cent each to settle at 244,738.74 points and N156.970 trillion, respectively.
Similarly, all other indices finished higher apart from the pension, AFR Bank Value, MERI Growth, MERI Value, consumer goods, Lotus II, industrial goods, sovereign bond and commodity indices, which fell by 0.03 per cent, 1.20 per cent, 0.21 per cent, 1.61 per cent, 0.54 per cent, 0.51 per cent, 1.00 per cent, 2.04 per cent and 0.34 per cent, respectively.
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