The Managing Director and Chief Executive Officer of Financial Derivatives Company Limited, Bismarck Rewane, announced that Ghana is now wealthier than Nigeria.
Rewane revealed this during an interview with Channels Television.
The prominent economist pointed out that Nigeria has dropped from being the 32nd largest economy globally to the 42nd.
He also highlighted that within Africa, Nigeria has fallen from its 1st position to 4th in terms of wealth management and accumulation.
Rewane, noting Ghana’s overtaking of Nigeria, stated, “Previously, we were always wealthier than Ghana. Now, the situation has changed. External reserves and GDP figures clearly illustrate this shift.”
Earlier this year in March, Rewane, as CEO of FDC, was appointed to President Bola Tinubu’s Economic Management Team Emergency Taskforce (EET) to develop and implement a comprehensive emergency economic plan.
Speaking on the first anniversary of Tinubu’s presidency, Rewane evaluated Nigeria’s economic performance in terms of the good, the bad, and the ugly, based on his metrics.
He mentioned that while the economic metrics and rankings are challenging, there is potential for improvement in the Nigerian economy.
“Our ranking among African nations has deteriorated. Last year, Nigeria’s GDP growth was 2.98 percent, while South Africa’s was 1.93 percent, Kenya’s was 4 percent, and Ghana’s was 3.8 percent. Our inflation rate was 33 percent, compared to 5 percent in South Africa and Kenya, and 25 percent in Ghana.
“Our GDP per capita is $1,111, whereas South Africa’s is $6,700, Kenya’s is $2,000, and Ghana’s is $2,200. External reserves as a percentage of GDP highlight a tough scenario.
“Previously, we were always wealthier than Ghana, but that has changed. External reserves and GDP figures provide the evidence.”
Rewane also noted that significant policy changes were announced in 2023, including the ambitious $1 trillion GDP goal, but the lag between policy implementation and their effects has hindered outcomes, leading to unintended consequences such as social unrest.
“Nigeria faces a cost of living crisis, with minimum wage negotiations causing widespread conflict. Poor sequencing of reforms has negatively impacted output. Nigeria requires new borrowing to refinance existing debts, and policy changes, institutional reforms, and new borrowings are anticipated to drive positive and rapid growth from 2025 to 2026.
“The economic frailty is partly structural and largely exogenous. Structural challenges include rent-seeking, market structure issues, an energy crunch (4,000 MW), regulatory bottlenecks, declining labor productivity, and demographic pressures including urbanization.
“Exogenous shocks include COVID-19 disruptions, post-pandemic global supply chain issues, political tensions, high global interest rates, transit developments, cost of living crisis, wage disputes, and social unrest,” Rewane elaborated.
The economist also reviewed President Bola Tinubu’s promises, policies, and announcements a year into his administration.
“One of President Tinubu’s key promises was to increase GDP to $1 trillion within eight years. Our GDP was nearly $400 billion at that time, so the goal was to more than double it in eight years.
“He eliminated petroleum subsidies, unified exchange rates, committed to overhauling the security infrastructure, and promised to double power generation from 5,000 MW to 10,000 MW within five years, equating to an annual increase of 1,250 MW.
“He also pledged to control inflation. These were the key promises, policies, and announcements made.”
The Presidential Economic Coordination Council (PECC) is composed of distinguished leaders and key government officials, with President Tinubu serving as the Chairman.
