Rewane to FG: GDP growth means nothing if people remain poor
Bismarck Rewane, economist and chief executive of Financial Derivatives Company, has advised Nigerian policymakers to shift focus from positive economic indicators to policies that improve the lives of ordinary citizens.
His comments follow recent data from the National Bureau of Statistics (NBS), which showed that Nigeria’s Gross Domestic Product (GDP) grew by 3.13% in the first quarter of 2025.
The Central Bank of Nigeria (CBN) also maintained its interest rate at 27.5 percent for the third consecutive time.
Rewane, speaking in an interview on Channels Television, said growth should not just be numerical — the people must feel it.
“The market was divided. Some felt that it was time to bring down rates by 25 basis points. Many others felt they should retain it. I think the committee did the right thing,” Rewane said.
He explained that the apex bank’s decision to maintain rates reflects a strategic pause in the face of uncertainty.
“We have a world of uncertainty out there and a world of vulnerabilities in here. So, the safe thing to do, the cautious thing to do, is to maintain your fire, hold your fire, and instead of going precipitously to reduce rates and then change all of a sudden,” he said.
While the 3.13 percent GDP growth figure was seen as a positive signal, Rewane cautioned against over-celebration.
“Nigeria’s GDP rebase is approximately $250 billion. Nigeria is still the fourth largest economy in Africa behind South Africa, Egypt and Algeria,” he said.
“In the world, it is number 40. The goal before was for Nigeria to be within the top 20 countries in the world. We are now number 40.”
To reach the ambitious target of a $1 trillion economy by 2030, Rewane noted, Nigeria would need to grow at a much faster pace.
“Today, we are growing at 3.1%. To reach $1 trillion, we need to grow at a rate of 15% from our current $250 billion. That’s not going to happen quickly except when certain things change,” he said.
On the recent appreciation of the naira, Rewane offered a cautious assessment. While the currency has gained ground, particularly in the parallel market, he noted this could easily reverse if oil prices fall.
“The Naira has gained 8% year to date, but it’s gaining against a weaker dollar… If the price of oil drops below $65 a barrel, then this currency appreciation could be threatened,” he said.
‘FOCUS MUST SHIFT TO THE PEOPLE’
Despite some improvements in inflation data, many essential items remain expensive.
Rewane gave examples: “Last year, in July, a bag of rice was N84,000. It’s now N87,000… Chicken was N4,500 per kilogram.
“Drumsticks are now up by 22% at N5,500. Eggs are up from N5,200 to \N5,500, up 5.7%. Pepper is up 50% from N60,000 to N90,000. And tomatoes are up by 83%.
“Only a few items, such as garri and cooking gas, have seen price reductions. But even that is not enough.
“That’s good, but you have to have the food to cook. Right now, you have the gas, but there’s hardly any food to cook in it.”
For Rewane, true economic success lies in inclusive growth that touches lives.
“What we want to avoid are happy statistics and unhappy people… You can grow as much as you want. You can do it all; it must be about the welfare of the people.
“The people must feel it and must be happy about it. If not, you will have happy statistics and unhappy people.”
“We must make sure we distribute properly and make sure that the benefits of this get down to the common man to reduce poverty levels and create jobs.”
