There is a significant disconnect between the latest Gross Domestic Product (GDP) and unemployment numbers released by the National Bureau of Statistics (NBS) on one hand and the lived realities of countless citizens on the other, according to the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA).

NBS recently reported a 3.46 per cent GDP growth for the third quarter (Q3) of 2024 and at decline in unemployment to 4.6 per cent for the same period, but NACCIMA said the report is not a true reflection of the current realities in the country.

National President of NACCIMA, Dele Kelvin Oye, said in a statement that the data do not adequately consider critical factors such as the rising taxation imposed by sub-nationals, the anticipated ramifications of the 2024 tax bill, and the adverse effects of regulatory barriers that hinder both local and foreign investment, among others.

He advocated for genuine growth, saying that Nigeria risks further deterioration in the long run if the root causes of economic malaise are not addressed.

“As representatives of the Nigerian Association of Chamber of Commerce, Industry, Mines & Agriculture (NACCIMA), we feel it is imperative to address the latest release by the National Bureau of Statistics (NBS) which reports Nigeria’s Gross Domestic Product (GDP) growth as 3.46% and the reported decline in unemployment figure to 4.6% for Q3 2024,” Oye said.

“We must advise caution on how these figures are received and interpreted given the current realities in light of the prevailing economic challenges confronting many Nigerians countrywide.

“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 on ordinary Nigerians,” he said.

The NACCIMA president said given the prevailing circumstances, the assertion of robust GDP growth appears implausible, particularly as the purchasing power of the average citizen continues to erode alarmingly.

“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,” he said.

Many graduates and skilled workers remain unable to secure gainful employment, Oye said, adding that a mere statistical reduction does not translate into genuine economic recovery or job creation.

“The ongoing volatility within our oil and gas sector, coupled with the lack of innovative collaboration between regulatory agencies and private sector stakeholders who have made substantial investments, contradicts the narrative of growth posited by the NBS report,” Oye said.

“Furthermore, the exasperating costs of borrowing, with commercial interest rates hovering between 35% and 40%, exacerbate the challenges faced by businesses attempting to maintain operations, let alone expand and contribute meaningfully to overall GDP growth.

“Therefore, any asserted growth in GDP must be contextualized within the extensive operational hurdles confronting entrepreneurs and the broader implications for sustainable development,” he said.

Oye therefore urged the government and relevant authorities to engage more vigorously with the organized private sector, acknowledge their insights and address their concerns within the policy making process.

He further urged that statistical reporting reflect the true economic conditions on the ground so that growth could be measured not just in numbers but also in terms of real improvements to the quality of life and economic opportunities available to our citizens.

While the NBS report might convey an optimistic narrative, Oye implored all stakeholders to consider the complexities and contradictions inherent in Nigeria’s economic landscape, saying only through an authentic understanding of the dynamics could Nigeria 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,” Oye said.

“We continue to offer our suggestions for reducing interest rates and stabilizing the naira. It is vital that we work collaboratively toward collective success; anytime 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,” he said.