Also, with Nigeria not reaping from higher oil prices owing to high subsidy payments and lower crude oil production, government’s revenue is threatened, raising the need to borrow.
Aggregately, the oil sector contributed 6.33 per cent to the total real GDP in Q2 2022, down from the figures recorded in the corresponding period of 2021 and the preceding quarter, where it contributed 7.42 per cent and 6.63 per cent respectively. He however noted that, for the man on the street, the GDP growth is not as relevant as the impact of the fast rising prices of goods and services. “The way things are going, what everybody is concerned about is inflation and unfortunately, measures adopted by the Central Bank of Nigeria will actually hurt the GDP growth,” he said.