Nigerian growth quickens despite fuel price hit: Govt

Nigeria's economy grew faster than expected in the third quarter of the year, official statistics showed on Monday, in news hailed by a government under fire over galloping inflation.

According to the National Bureau of Statistics, Nigeria's GDP growth hit 3.46% year-on-year, up from 3.19% in the second quarter and 2.54% in the same period last year.

President Bola Tinubu, much criticised at home for abolishing a fuel subsidy shortly after coming to office last year, seized on the news to defend his record.

In a statement welcoming the figures, Tinubu's office said the "growth indicates Nigeria is recovering from the reforms' unintended effects."

Economic reforms

During his first year in power Tinubu has loosened currency controls and abolished a fuel subsidy, sending costs at the pump soaring and the naira tumbling against the dollar.

The reforms triggered protests from motorists and UN aid agencies have warned that price inflation has exacerbated the threat of food insecurity for millions of Nigerian families.

The annual inflation rate has hit 33.88%, up from around 24 when Tinubu took office.

But the president took heart that growth is now strengthening, promising that Nigerians would eventually see the benefit of the reforms, which also seek to rebalance the tax burden.

'Work needs to be done'

"I am excited by the latest report from the National Bureau of Statistics that our economy grew in the third quarter more than last quarter and even beyond projected estimates," Tinubu said.

"While I welcome this development, the latest figure also shows the much work that needs to be done," he acknowledged.

Nigeria is Africa's most populous nation, with at least 220 million inhabitants, but only its third-biggest economy, with a GDP of $362.8 billion in 2023, according to the World Bank.

Tinubu reiterated his pledge to turn Nigeria into a trillion-dollar economy by 2030.

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