The Chief Executive Officer of Financial Derivatives, Bismarck Rewane, has said that Ghana’s economic performance now surpasses that of Nigeria’s.
Speaking on Wednesday on Channels TV while analysing President Bola Tinubu’s first year in office, the economist stressed Nigeria’s economic decline, noting that the country has fallen from the 32nd largest economy globally to the 42nd.
He noted Nigeria’s descent in African rankings, from 1st to 4th in terms of wealth management and accumulation.
He compared Nigeria’s figures to those of South Africa, Kenya, and Ghana, illustrating Nigeria’s lag behind its peers.
“Our ranking among African countries has declined,” Rewane said. “Last year, our GDP growth was 2.98 per cent, South Africa was 1.93 per cent, Kenya 4 per cent, and Ghana 3.8 per cent.
“Inflation was 33 per cent for us, five per cent for South Africa, five per cent for Kenya, and 25 per cent for Ghana.
“In the past, we were always richer than Ghana, now we are here. External reserves and GDP figures speak for themselves.
“Our GDP per capita is $1,111, while South Africa’s is $6,700, Kenya’s is $2,000, and Ghana’s is $2,200. External reserves as a percentage of GDP illustrate a tough picture.”
Rewane underscored the significant policy changes initiated by President Tinubu in 2023 as contributing factors to the gloomy economic outlook, highlighting the time lag between policy announcements and their effects, leading to social unrest.
He stressed the necessity for institutional reforms and new borrowings to stimulate positive growth, foreseeing a turnaround in economic fortunes by 2025 to 2026.
“The wrong sequencing of reforms is taking its toll on output,” he said. “Nigerians and Nigeria need new borrowing to refinance existing obligations and policy changes.
“Institutional reforms and new borrowings are expected to lead to positive and faster growth from 2025 to 2026.”
Despite the current challenges, Rewane remained optimistic, noting that there is always light at the end of dark tunnels.
