PricewaterhouseCoopers International Limited,in its Economic Outlook released on October 17  highlights notable developments in Nigeria’s economy, including growth in sectors outside the oil industry.

In the Nigerian economic landscape, sectors demonstrating economic dominance are those with activity levels reaching or exceeding N1 trillion, and these are considered vital contributors to overall economic health.
In contrast, sectors with activity levels below N1 trillion are classified as small sectors, representing a comparatively smaller economic impact.

Fast-growing sectors are identified by their impressive growth rates, exceeding 3%. These sectors play a pivotal role in driving economic expansion and development.

On the other hand, sectors with growth rates falling below 3% are categorized as slow-growth sectors, indicating a need for strategic intervention to bolster their contributions to the economy.

Recent developments in the utility sector have been influenced by the Nigerian Electricity Regulatory Commission (NERC), which increased the prices of single-phase and three-phase meters by 39.7% and 31.1%, respectively. This move aims to strike a balance between reasonable cost recovery for Metre Asset Providers (MAPs) and affordable pricing for consumers, ultimately ensuring a sustainable provision of meters. As a result of this policy implementation, the utility sector experienced the highest growth at 31.8%, followed by financial services at 26.8%, information and communication at 8.6%, and construction at 3.4%.

The growth in the utility sector can be partly attributed to a 3.1% increase in the number of metered customers, totaling 5.47 million people. Financial services, on the other hand, have seen growth due to increased interest income, digital transactions, and gains from forex revaluation.

The information and communication sector witnessed significant growth of 8.6%, driven by heightened consumption of data services and a growing subscriber base. These trends reflect the evolving landscape of energy accessibility and technology adoption in Nigeria, underscoring ongoing efforts to balance industry sustainability with consumer affordability.

Looking forward, the Outlook anticipates rising inflation in Nigeria, primarily driven by two factors: escalating petroleum costs and the devaluation of the national currency. This upward trend in inflation is expected to impact prices across various sectors, including food, transport, and non-food items. The anticipated hike in petroleum product prices, correlated with the surge in international oil prices, is a significant contributor to this expected inflation, affecting various aspects of the economy.