World Bank Predicts Nigeria’s Economy Could Grow By 2.5%

Why Nigeria Is Not Benefiting From The Rise In Oil Price -World Bank

The World Bank in its latest Global Economic Prospects report predicted that Nigeria’s economy is expected to grow by 2.5 percent in 2022.

The Washington-based institution attributed the rebound to higher oil prices as well as accelerated growth in telecommunication and financial services.

“In Nigeria, growth is projected to strengthen somewhat to 2.5 percent in 2022 and 2.8 percent in 2023,” the report reads.

“The oil sector should benefit from higher oil prices, a gradual easing of the Organization of the Petroleum Exporting Countries (OPEC) production cuts, and domestic regulatory reforms.

“Activity in service sectors is expected to firm as well, particularly in telecommunications and financial services. However, the reversal of pandemic-induced income and employment losses is expected to be slow; this, along with high food prices, restrains a faster recovery in domestic demand.

“Activity in the non-oil economy will remain curbed by high levels of violence and social unrest, as well as the threat of fresh COVID-19 flare-ups with remaining mobility restrictions being lifted guardedly because of low vaccination rates — just about 2 percent of the population, had been fully vaccinated by the end of 2021.”

COVID-19 Variants

According to the world bank’s report, new threats from COVID-19 variants and a rise in inflation, debt, and income inequality could endanger the recovery in emerging and developing economies.

It further predicted that per capita income is expected to be lower in 2022 than a decade ago in countries such as Angola, Nigeria, and South Africa.

“After barely increasing last year, per capita incomes are projected to recover only at a subdued pace, rising 1.1 percent a year in 2022-23, leaving them almost 2 percent below 2019 levels,” the report reads.

“In South Africa and Nigeria, per capita incomes are projected to remain more than 3 percent below pre-pandemic levels in 2023.

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