As per the Word Bank, recent reforms enacted by the Federal Government are expected to contribute to the progressive recovery of GDP growth, projecting an annual growth rate of 3.5 percent between 2023 and 2026.
The Word Bank mentioned, "Services, particularly in banking and ICT, and the non-oil industry, will benefit from a more stable and predictable macroeconomic environment, along with easier access to FX and imported inputs."
The services sector witnessed a year-on-year growth of 4.3 percent in the first nine months of 2023, primarily fueled by advancements in financial services and ICT, according to the Bretton Woods institution.
Fueled by ICT, the service sector stands as a primary driver of growth in the country, with the ICT sector experiencing an 8.5 percent year-on-year growth in the first nine months of 2023, propelled by increased voice and Internet subscribers.
E-payments played a significant role in driving the growth of financial services, contributing to a 25.3 percent output increase in the first half of 2023.
The global bank commented, "The economic outlook for Nigeria in the short to medium term relies on the continuation and effectiveness of its macroeconomic stabilization agenda."
“Successful implementation of the initiated reforms will be the first step toward improving Nigeria’s growth prospects. With the implementation of these first macroeconomic stabilisation reforms, the economy is expected to grow at an average annual rate of 3.5 per cent during 2023–2026, or 0.5 of a percentage point higher than in a scenario in which the reforms had not been implemented.
“Services, especially banking and ICT, together with industry will benefit from a more stable and predictable macroeconomic environment and easier access to FX and imported inputs.”
Recently, the Association of Licensed Telecommunications Operators of Nigeria stated that the lack of foreign exchange may impact job creation in the telecoms sector.
Telcos disclosed this during a Nigerian Communications Commission industry interactive session with the new Executive Vice Chairman and Chief Executive Officer of the commission, Dr Aminu Maida.