Manufacturers in Nigeria have urged the country’s economic leaders to stop celebrating misleading and politically motivated growth figures, which starkly contrast with the reality of rising poverty and soaring prices for fuel, food, and other essential goods.
This reaction comes after Finance Minister Wale Edun claimed the economy had grown by over 30% in the first half of the year, supported by significant foreign exchange inflows that he suggested could resolve past obligations and liquidity issues.
In response to Edun’s assertions, Frank Onyebu, a manufacturer and former chairman of the Manufacturers Association of Nigeria (MAN), questioned the criteria used to assess economic improvement, noting that many people have been driven deeper into multi-dimensional poverty.
He stated, “I’m unsure how these officials arrive at their figures, as they don’t reflect the actual situation. They should focus on addressing the long-standing economic decline.”
Onyebu added, “It’s misleading to claim an economy is growing when most citizens experience the opposite. There is no evidence of foreign exchange abundance. The exchange rate remains excessively high, production costs are unsustainable in this weak economy, income levels are stagnant, consumer demand is low, and inflation is at unprecedented levels. Thus, it’s hard to discuss a healthy economy.”
He emphasized that many rely on the black market for forex, noting the lack of export activity, with even crude oil exports not being fully accounted for.
Supporting Onyebu’s comments, Daniel Dickson-Okezie, an SMEs expert and member of the Lagos Chamber of Commerce and Industry (LCCI), criticized the claim of over 30% growth, highlighting that citizens are struggling with severe poverty and that many manufacturers are shutting down.
Dickson-Okezie remarked, “It’s false to assert that the financial sector grew by over 30% in early 2024. The sector is grappling with the weak naira’s impact, which will continue affecting various sectors through Q3 and beyond. Nearly 79% of Nigerian economic sectors have experienced low growth since Q2.”
He warned that oil sector growth is expected to decline in Q3 due to various challenges and reiterated that while there has been slight improvement in forex accessibility, it is still insufficient for businesses, significantly affecting the manufacturing sector and others reliant on forex.
Regarding the Finance Minister’s claims about the financial sector, Dickson-Okezie insisted that the realities contradict these assertions, urging the government to implement effective fiscal and monetary measures to lift Nigerians from hardship to prosperity.
Recently, the Presidency dismissed a Bloomberg report suggesting delays in coupon payments on Nigeria’s savings bonds, affirming that all financial obligations are being met on time. Bayo Onanuga, Special Adviser to the President on Information and Strategy, used social media to refute these claims, emphasizing the nation’s financial soundness and citing Finance Minister Edun’s assurance of robust liquidity.
Patience Oniha, Director General of the Debt Management Office (DMO), confirmed that the Central Bank of Nigeria had processed all payments due by September 19, with those for September 20 already underway.
Despite the government’s reassurances, the 2024 Global Report on Food Crises, produced by the Food Security Information Network and partners, reveals a troubling reality for Nigeria, indicating that 24.9 million people are facing acute hunger, ranking the country second among 59 nations, just behind the Democratic Republic of Congo.