Experts project stronger GDP growth from services, agriculture expansion

Prof. Ken Ife, Lead Consultant to the ECOWAS Commission, says Nigeria’s Gross Domestic Product (GDP) growth can exceed current projections if momentum in key sectors is sustained.

Ife, who is also President, Professional Economist and Policy Management, made the assertion in an interview with newsmen on Wednesday in Lagos.

He urged the Federal Government to increase investment in the services and agricultural sectors to consolidate recent economic gains.

Ife explained that the services sector was expected to record stronger performance in the current quarter due to seasonal consumption patterns.

“This period of the year falls within the ‘ember months’, when most Nigerians are expected to spend more on goods and services, driving aggregate consumption,” he said.

According to Ife, one major constraint to consumer spending, transportation cost, has been partly eased by the availability of more affordable petroleum products from the Dangote Refinery.

“However, the only challenge would have been the cost of transportation, but it is currently being controlled by more affordable petroleum products from the Dangote refineries,” he said.

Ife also said the implementation of the new tax law would further support GDP growth by improving household purchasing power.

“Workers will be able to retain more of their income because the government will now be exempting Value Added Tax (VAT) on medical equipment, educational materials and essential items that are key to the lives of ordinary people,” Ife said.

He noted that this would allow households to deploy retained income into other sectors, stimulating wider economic activity.

“Which enables household income to be retained and deployed to other sectors that will enhance the general economy,” Ife added.

The economist stressed that Small and Medium Enterprises (SMEs) with turnovers below N100 million would benefit significantly from tax exemptions.

“This means SMEs will be allowed to grow and produce more, as well as create employment opportunities for the youth,” he said.

Ife further identified the oil and gas sector as a strong contributor to growth, citing improved output levels.

“The sector has raised its output to 1.8 million barrels per day because of the current peace being experienced and the exploitation of new frontiers,” he said.

Also speaking, Mr Chris Nemedia, a former Director of Research, Central Bank of Nigeria (CBN), said the government must continue to improve the business environment to sustain economic expansion.

Nemedia called for increased budgetary allocation to agriculture and its entire value chain, describing the sector as critical to inclusive growth.

“The government should mechanise farming activities with more tractors and support the processing of farm produce to ensure food security,” he said.

According to him, such investments would position Nigeria for food self-sufficiency and eventual export growth.

“This will enable the country to be self-sufficient in food production and become a net exporter in the future, given our immense prospects,” Nemedia said.

He also urged the government to prioritise the power sector, noting that reliable electricity was essential for industrial productivity.

“Regular electricity should be made more available and affordable, especially in industrial hubs across the country,” he said.

Nemedia added that improved power supply would boost domestic production, reduce import dependence and accelerate economic growth.

Supreme news reports that the National Bureau of Statistics (NBS) said Nigeria’s Gross Domestic Product (GDP) in real terms grew by 3.98 per cent year-on-year in the third quarter of 2025.

The NBS disclosed this in the Nigerian Gross Domestic Product Report for third quarter of the year, released in Abuja on Monday.

The report noted that the growth rate was higher than the 3.86 per cent recorded in the third quarter of 2024.