The Organisation of the Petroleum Exporting Countries (OPEC) has commended Nigeria for its remarkable economic performance in the third quarter of 2023, stating that it has exceeded expectations.
OPEC, in its Monthly Oil Market Report, attributed this commendable growth to the robust activities witnessed in the non-oil sectors, particularly in services and agriculture.
The report revealed that Nigeria’s economy demonstrated resilience by achieving a substantial 3.1% year-over-year increase in the third quarter of the previous year.
This surpassed the 2.6% year-over-year growth recorded in Q2 2023 and the 2.4% year-over-year growth in Q1.
The commendation from OPEC reflects positively on the efforts made within the country to boost economic activities beyond the oil sector.
Despite the accolades, OPEC expressed a note of concern regarding inflationary pressures within Nigeria.
The report indicated that the country’s inflation rate had surged to 27.3% in October.
This worrying trend, according to OPEC, is primarily attributed to the removal of petrol subsidies and the devaluation of the naira.
The report stated, “There are concerns about inflationary pressures in Nigeria, with the inflation rate reaching 27.3% year-over-year (in October). This acceleration is largely attributed to persistent second-round effects following the removal of petrol subsidies and the devaluation of the naira.”
This inflation rate marked an increase from 26.7% year-over-year in September and 25.8% in August.
The annual core inflation rate, excluding farm produce, also witnessed a rise to 22.7% year-over-year in October, compared to 22.1% in September and 21.5% in August.
Also, monthly consumer prices increased by 1.7% month-over-month in October, following a rise of 2.1% in September and a surge of 3.2% in August.
OPEC’s report further highlighted a potential economic challenge ahead, noting that the drop in the Purchasing Managers Index might be indicative of a complex economic situation looming on the horizon.
As Nigeria navigates through these economic dynamics, the commendation from OPEC serves as both recognition and a call for vigilance, urging stakeholders to address the inflationary concerns and continue fostering a diversified and resilient economy beyond the oil-dependent landscape.