₦airaland Forum

Nigeria's Nominal & Real GDP

Nominal GDP
2014 — ₦89.04 trillion
2024 — ₦269.29 trillion

Real GDP
2014 — ₦67.15 trillion
2024 — ₦79.29 trillion

#Statisense
(GDP report, NBS)

MEEVEET:
Bros eeh your education in economics is very bad

Your GDP in naira value grew 3x but naira lost 90% value in the same period and you think that's a positive growth?

Which school some of Una dey go even

LegendHero:
Naira do not lose value in the real sense. Government just stop defending the naira.

It’s just like petrol. We’ve never paid for petrol true price in over 3 decades; government is subsidizing it which explained why it is sold for the amount we are getting it before.

So if Tinubu suddenly say I want to blow Nigeria FX reserve and defend naira; then he bring the value back to N450 and borrow massive loans to defend the currency, will you praise him if the GDP value immediately triple in Dollar terms due to that?

MEEVEET:
Naira doesn't did lose value? Bros what exactly did u take today please

Do you read what you post at all? Or you just post them without reading?

LegendHero:
*In the real sense.

The government policy just shifted and rather than blow the FX to defend the naira, we choose to allow it to find its level with little intervention.

If GDP is gross total of goods and services produced in a country, can you tell me the goods we produce that will suddenly make our GDP triple in value if Tinubu defend naira tomorrow just like his predecessors?

MEEVEET:
Lol so there is no inflation in the real sense naira just lost value ... Since goods today are cheaper in dollars compared to 2015

So based on your logic no nations currency loses value

jmoore:
1 dollar = 185 naira in 2014.

1 dollar = 1,600 naira in 2024.



Compare GDP in USD


- Nominal GDP (USD):
- 2014: 481.3 billion USD
- 2024: 168.3 billion USD
→ Decrease of ~65% in dollar terms due to naira depreciation.

- Real GDP (USD):
- 2014: 363.0 billion USD
- 2024: 49.6 billion USD
→ Decrease of ~86% in dollar terms.

Compare Real GDP in Naira (Inflation-Adjusted)
Since real GDP accounts for inflation, let's compare the naira value of real GDP:
- 2014:67.15 trillion NGN
- 2024:79.29 trillion NGN
→ Growth of ~18% over 10 years (~1.7% annual growth)

Did GDP Improve?
In USD terms:No, both nominal and real GDP declined sharply due to the naira's depreciation.

In Naira terms (real GDP):Yes, but only slightly (~18% over 10 years, indicating weak economic growth).

The naira's depreciation (from 185 to 1,600 per USD) wiped out GDP gains in dollar terms, reducing Nigeria's economic size internationally.


Nigeria's economy grew slightly in real terms (in naira), but the severe currency depreciation made the country much poorer in dollar terms. Thus, overall GDP did not improve meaningfully when considering purchasing power and international comparisons.


It's not about copying and pasting for propaganda. Can you interpret what you are copying?

LegendHero:
The major cause of inflation during Tinubu period is majorly due to fuel subsidy removal and currency devaluation. Are you trying to argue this?

Yes, nation currency lose value but not at nearly 300% in 2 month when not in a recession or war.

The only reason why Naira lost that value in late 2023 is simply because CBN changed their policy on defending the naira.

helinues:

fuckingAyaya:
his Mugulity shock you abi? You can see now that you can't defend the indefensible.

LegendHero:
*In the real sense
The government policy just shifted and rather than blow the FX to defend the naira, we choose to allow it to find its level with little intervention.
If GDP is gross total of goods and services produced in a country, can you tell me the goods we produce that will suddenly make our GDP triple in value if Tinubu defend naira tomorrow just like his predecessors?

Agbegbaorogboye:
I'm surprised that you will open a thread on this gallantly
It shows your level of ignorance

There is a reason why GDP is measured in dollar terms. It is to ensure uniformity. If GDP is measured in local currnecy of each country, China will have the largest GDP in the world and not the US. But everyone knows that China's currency is deliberately undervalued to support their aggressive export.

As we all know that increased productivity is catalysed by increased local demand, If we are to go with your claim, Nigeria's demand in 2024 is higher than that of 2014. Do you agree with that? Look around you. Do Nigerians have the same lifestyle and consumption in 2024 as they had in 2014? What is shoring up the GDP numbers you have above is the dollar component of our GDP which will balloon as naira is devalued even if real production is reduced.

Now to look at the numbers you posted, let's rearrange it in proper order so it makes more sense

In 2014 Nominal: 89trn Real: 67trn
In 2024 Nominal: 269trn Real: 79trn

From the above, if you know the difference between nominal and real GDP, it is obvious that the economy shrank and not expanded as you erroneously claim.

Nominal GDP is GDP without accounting for inflation. It shows a difference of 180trn from 2014 to 2024.

However, that 180trn increase is wiped away and falls to a paltry 12trn once inflation is considered which is the real GDP

In order words, the GDP lost a value of 168trn(180trn-12trn) from 2014 to 2024

So what exactly are you rejoicing about if not ignorance?

DMerciful:
GDP is always calculated in dollars

Tinubu na scam

LegendHero:
GDP is calculated in the country currecy (Naira).

IMF and other world body only convert it to dollar to respect the data on the global scale.

You must compare your historical date in Naira term if you are comparing Nigeria in 2014 and 2024.

RenaissanceGuy:
Don't mind them, you're the most intelligent person on Nairaland. Just advice the govt to further devalue naira so that $1 can exchange for ₦15000, a crate of egg cost ₦70k and our GDP will further 'tentriple' in naira.

DMerciful:
What about per capital income?

LegendHero:
You are also very intelligent. Tinubu can just defend the naira and make $1 = N1 so that our GDP will multiply and become $269trillion , then a crate of egg will be free.