Have you wondered why Nigeria may no longer be described as the giant of Africa or the biggest economy in Africa?
This is because Nigeria’s economy is expected to slip to fourth place in Africa this year, behind South Africa, Egypt, and Algeria, according to the International Monetary Fund, IMF.
The IMF attributed this to the devaluation of the Naira, which has caused Nigeria’s GDP to decline.
In 2024, South Africa is projected to have the largest economy in Africa, followed by Egypt and Algeria. Nigeria’s GDP is expected to grow by 3.34% in 2024, but its economy will still trail behind the top three.
This is a significant change from 2022 when Nigeria had the largest economy in Africa.
The devaluation of the Naira and economic reforms in Egypt have contributed to this shift. South Africa’s economy, on the other hand, has remained relatively stable.
Speaking with WADR’s Usman Umar, an International Economist, Victor Agim says all indices on the ground support IMF’s projection and that the handlers of Nigeria’s economy must act fast to avert a further decline in the standard of living for the citizens.