In a recent interview with Channels Television, Bismarck Rewane, the Managing Director/Chief Executive Officer of Financial Derivatives Company Limited, made a striking revelation about Nigeria’s economic status compared to that of Ghana. According to Rewane, Ghana has now overtaken Nigeria in terms of wealth, marking a significant shift in the region’s economic landscape.
Highlighting Nigeria’s economic decline, Rewane pointed out that the country has fallen from being the 32nd largest economy in the world to the 42nd position.
He emphasized that Nigeria’s descent is not limited to the global ranking alone; in Africa, the nation has slipped from its previous 1st ranking to the 4th position in terms of wealth management and accumulation.
“In the past, we were always richer than Ghana, but now we are here. External reserves and GDP figures speak for themselves,” Rewane stated, shedding light on the stark reality of Nigeria’s economic performance compared to its West African counterpart.
Moreover, Rewane, who is also a member of President Bola Tinubu’s Economic Management Team Emergency Taskforce (EET), reflected on Nigeria’s economic performance under Tinubu’s administration on its first anniversary. He categorized Nigeria’s economic performance into the good, bad, and ugly based on available metrics.
While acknowledging the tough economic metrics and rankings, Rewane expressed optimism about the potential for improvement in Nigeria’s economy. He highlighted major policy changes announced in 2023, including the ambitious goal of achieving a $1 trillion GDP, as well as reforms in energy, security, and fiscal policies.
However, Rewane also pointed out structural and exogenous challenges facing Nigeria, including rent-seeking, market structure issues, energy shortages, regulatory bottlenecks, declining labor productivity, and demographic pressures. These challenges, coupled with exogenous shocks like the COVID-19 pandemic and global supply chain disruptions, contribute to Nigeria’s economic weakness.
In reviewing President Tinubu’s promises and policies, Rewane outlined key initiatives such as the removal of petroleum subsidies, exchange rate unification, security overhaul, and doubling power generation.
He emphasized the importance of policy changes, institutional reforms, and new borrowings in driving positive growth outcomes for Nigeria.
As President Tinubu’s Economic Coordination Council continues to navigate Nigeria’s economic challenges, stakeholders anticipate concerted efforts to address structural deficiencies and capitalize on emerging opportunities to foster sustainable economic growth and development.