Market News

By Godwin Oritse

Logistics expert and former Vice President of the Chartered Institute of Logistics and Transport (CILT), Dr. Alban Igwe, has forecasted a potential 63% growth in Nigeria’s service sector contribution to its Gross Domestic Product (GDP) by 2025.

Speaking at the 2024 Nigeria Supply Chain Leadership Summit held at the Movenpick Hotel in Ikoyi, Lagos, Igwe noted that in Q2 of 2024, Nigeria’s service sector contributed 58.76% to the nation’s GDP and grew by 3.79%.

He pointed out that in 2023, the services sector represented 67% of global GDP and accounted for 50% of worldwide jobs. He also highlighted a significant increase in the Gross World Product (GWP), which is expected to grow by over 400% from $50 trillion in 2000 to $250 trillion in 2057.

Igwe shared that, in Africa, South Africa leads the service economy with a GDP contribution of $214.9 billion and an employment rate of 71.60%, followed by Nigeria at $209.7 billion and 51.83% employment, and Egypt at $128.9 billion and 48.55% employment.

He emphasized that Nigeria’s service sector growth would rely on efficient supply chain management, including robust transportation, effective communication, and streamlined supply chain financing. “Globally, $88 trillion worth of goods and services are produced annually, amounting to $2.8 million every second,” he noted.

Noting that   the Gross World Product is xpected to reach major milestones – $50 trillion by 2000, $100 trillion by 2020, $150 trillion by 2034, $200 trillion by 2046, and $250 trillion by 2057 – he stressed the importance of Nigeria’s participation in this global economic transformation.

Igwe added that Nigeria must enhance its trade capacity and customs modernization to improve efficiency, streamline procedures, and promote transparency.

“To facilitate trade, we should streamline trade-related organizations, unify mandates with clear timelines, and adopt a technology-driven single window for trade, possibly powered by artificial intelligence,” he concluded.