The Nigeria Labour Congress (NLC) has openly criticized the recently released National Bureau of Statistics (NBS) report on economic growth, alleging that the data was manipulated to present an overly optimistic picture of the nation’s economic condition.
This sentiment reflects widespread skepticism among Nigerians, who argue that the official statistics fail to align with their daily realities of economic hardship.
The NBS reported a 3.46% growth in Nigeria’s Gross Domestic Product (GDP) for Q3 2024, attributing the improvement primarily to the services sector. This figure marks an increase from the 3.19% recorded in Q2 2024 and significantly surpasses the 2.54% growth in Q3 2023.
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President Bola Tinubu has cited this growth as evidence of recovery following his administration’s economic reforms, including the removal of fuel subsidies and foreign exchange reforms. However, critics argue that the metrics fail to reflect the country’s broader economic challenges, particularly in sectors like manufacturing, which are struggling under the weight of rising costs and dwindling consumer demand.
Chris Onyeka, the National Assistant General Secretary of the NLC, described the NBS report as a “voodoo document,” accusing it of misrepresenting the economic realities of ordinary Nigerians.
“Unemployment cannot be coming down when factories are shutting down and consumer activity is plummeting,” Onyeka argued. He challenged the NBS to provide evidence of the sectors generating jobs and labeled the report a “figment of imagination concocted by people who want to manipulate figures.”
“Once data does not reflect reality, it loses relevance. Unfortunately, the NBS has lost credibility as a result of the data they continue spewing out,” he said.
Onyeka further criticized the credibility of the NBS, comparing its perceived failures to those of the Independent National Electoral Commission (INEC).
“The truth remains: the NBS has become a failed institution, much like INEC in the eyes of the public,” he remarked. According to Onyeka, the report undermines public trust by presenting data disconnected from the harsh realities on the ground.
Manufacturing Sector Crisis
Data within the NBS report itself paints a dire picture of Nigeria’s manufacturing sector. The sector’s nominal GDP growth plunged by 90.11% year-on-year, from 36.59% in Q3 2023 to just 3.62% in Q3 2024.
In real terms, the manufacturing sector grew by a marginal 0.92%, an improvement over Q3 2023’s 0.48%, but below the 1.27% achieved in Q2 2024. Its contribution to nominal GDP also dropped to 14.30%, down from 16.18% in Q3 2023, highlighting its declining influence on the economy.
The struggles of the manufacturing sector are not new but have been exacerbated in recent years. The Manufacturers Association of Nigeria (MAN) revealed that 767 manufacturing companies shut down operations in 2023, with an additional 335 classified as distressed. This downturn has been described by Odiri Erewa-Meggison, Chairman of MAN’s Export Promotion Group, as “the most challenging period in the history of the manufacturing sector.”
The economic reforms touted by the Tinubu administration have had mixed effects. While they are credited with improving fiscal discipline, they have also contributed to inflation, which reached 33.88% in October 2024, up from 32.70% in September. Many Nigerians argue that the rising cost of living and declining purchasing power have offset any potential benefits of GDP growth.
MAN Director General Segun Ajayi-Kadir emphasized the need for targeted trade policies and infrastructural development to rejuvenate the manufacturing sector.
The NBS data has fueled public distrust, as Nigerians grapple with economic challenges that seem at odds with the reported growth figures. With key sectors like manufacturing in decline and unemployment reportedly worsening, critics question the relevance of GDP growth as a measure of economic health.
“Where are the jobs coming from?” Onyeka asked. “Is it from employers who are complaining of consumer resistance and slowing economic activities? It doesn’t add up.”
He pointed out that employers continue to face reduced consumer spending and rising inventories, conditions that are hardly conducive to job creation.