The Nigerian economy underperformed in the first half of 2024.

To meet the target of 3.88 percent gross domestic product (GDP) growth set by the Nigerian government in the 2024 budget, the economy needs a minimum growth of 4% in the next three quarters.

Mr Bismarck Rewane, the Chief Executive Officer of Financial Derivates Company made this known on Thursday, July 18, 2024 at the Mid-Year Economic Review and Outlook organized by the Lagos Chamber of Commerce and Industry (LCCI) in Lagos.

He said, “The economy underperformed the expectations for H1’24. Economic growth in Q1’24 at 2.98% is less than the government benchmark of 3.88%.

"Real GDP has to grow at least 4% in the next three quarters to meet the target.”

Rewane added that although inflation remained untamed at a three-decade high of 34.19%, there is hope for improvement in the second half (H2’24).

“There are silver linings, giving a flicker of hope for H2’24. Oil prices averaged $83 per barrel (pb) in H1’24, and will remain above $80pb in H2’24.

“Federal Account Allocation Committee (FAAC) improvement is expected to alleviate fiscal pressures. Fiscal stabilization fund of N2trn could stimulate growth, but 0.85% of GDP is, no doubt, a drop in the ocean.

“Implementation of food import waiver could taper inflationary pressure, but there are risks – may quicken currency pressure; and stymie domestic agricultural activity,” he said.

On the new minimum wage rate, Rewane said: “Wage increment will boost aggregate demand but carries high inflation risks. It will test the fiscal sustainability of the state governments.”