NACCIMA criticizes NBS report on GDP growth, unemployment

…calls for policy overhaul

The Nigerian Association of Chamber of Commerce, Industry, Mines, and Agriculture (NACCIMA) has criticized the latest report from the National Bureau of Statistics (NBS) on Nigeria’s economic performance, describing it as “merely self-congratulatory statistics” that fail to reflect the lived realities of millions of Nigerians.

In its report, the NBS announced a 3.46% GDP growth and a decline in unemployment to 4.6% for the third quarter of 2024. However, NACCIMA has expressed scepticism about these figures, urging caution in their interpretation.

The association in a statement signed by Dele Kelvin Oye National President, NACCIMA. The association highlighted a stark disconnect between the optimistic statistics and the challenging economic conditions faced by Nigerians daily.

According to NACCIMA, hyperinflation fueled by frequent fuel price hikes, power shortages, and the devaluation of the Naira has significantly eroded the purchasing power of ordinary citizens, casting doubt on the reported GDP growth.

“The significant disconnect between these statistics and the lived realities of countless citizens is concerning. The Nigerian economy is still weighed down by the effects of hyperinflation stemming from frequent fuel price hikes, power shortages and Naira devaluation which resulted in a steep rise in the cost of living for ordinary Nigerians.

“Under these circumstances, the assertion of robust GDP growth appears implausible, particularly as the purchasing power of the average citizen continues to erode alarmingly,” the association said.

NACCIMA also questioned the reported drop in unemployment, emphasizing that the figures may not accurately account for the broader issues of underemployment and informal unemployment.

The association noted that many skilled workers and graduates remain without gainful employment, making it disheartening to suggest that a statistical reduction translates to genuine economic recovery or job creation.

“Moreover, the claim of declining unemployment warrants thorough examination. While the statistics may suggest an improvement, it is crucial to distinguish between those merely recorded as job seekers and the broader challenges of under-employment and informal unemployment that persist in our labour market.

“Many graduates and skilled workers remain unable to secure gainful employment, making it disheartening to suggest that a mere statistical reduction translates into genuine economic recovery or job creation,”

The association outlined several systemic challenges that undermine the economy, including high borrowing costs, with commercial interest rates of 35-40% crippling businesses, discouraging expansion and meaningful GDP contributions.

Rising taxation, the association said that the increased use of tax consultants by sub-national governments and the implications of the 2024 tax bill addaddsrther strain on businesses.

Regulatory barriers, Ineffective collaboration between regulatory agencies and the private sector stifles both local and foreign investment, particularly in critical sectors like oil and gas.

In response to these issues, NACCIMA has called for enhanced collaboration between the government and the private sector to ensure that economic policies address the realities on the ground. The association stressed the importance of policies that stabilize the Naira, reduce interest rates, and foster a conducive environment for businesses to thrive.

“Statistical reporting must reflect the true economic conditions so that growth can be measured not just in numbers but in real improvements to citizens’ quality of life and economic opportunities,” NACCIMA emphasized.

The association also criticized the government’s reliance on statistical narratives, arguing that any growth leaving 56% of Nigerians living in poverty, as reported by the World Bank in 2024, cannot be deemed successful.

NACCIMA urged the government to prioritize policies that address the root causes of Nigeria’s economic challenges and reiterated its readiness to work with the government toward sustainable growth that delivers tangible benefits to all Nigerians.

“While the NBS report might convey an optimistic narrative, we implore all stakeholders to consider the complexities and contradictions inherent in our economic landscape. It is only through an authentic understanding of these dynamics that Nigeria can aspire toward sustainable growth and development.

“We must recognize that mere growth that leaves 56% of Nigerians living in poverty, as reported by the World Bank in 2024, cannot be considered a success. Real growth necessitates a government commitment to supporting the private sector with appropriate policies and regulatory frameworks.

“We continue to offer our suggestions for reducing interest rates and stabilizing the Naira. We must work collaboratively toward collective success; anytime the government missteps, it normally leads to widespread suffering, but with the right policies, we can achieve shared prosperity. We advocate for genuine growth—not merely self-congratulatory statistics from the NBS that may mask deeper issues, akin to applying a band-aid to cancer. Without addressing the root causes of economic malaise, we risk further deterioration in the long run,”