Nigeria's economic growth has slowed as oil output has declined and non-oil activity has moderated. In the first three quarters of 2022, real GDP increased by 3.1 percent year on year (y-o-y), slightly more than the yearly population growth of 2.6 percent. Nigeria's growth performance, as well as its fiscal and external buffers, have decoupled from high oil prices, increasing macroeconomic risks.
It is critical to address the root causes of this separation and implement reforms to enhance Nigeria's macroeconomic environment. The federal government's Strategic Revenue Growth Initiative (SRGI) is a positive first step in reversing the previously declining trend in non-oil revenues as a proportion of GDP. This first achievement must be maintained and expanded upon.