According to the World Bank, the Nigerian economy will grow by 2.8 percent this year from its previous 3.3 percent. In the bank’s Africa Pulse Report April 2023 edition, entitled “Leveraging resource wealth during the low carbon transition”, Nigeria’s economic growth is projected to have a slight improvement to a 3 percent average annual rate in 2024-25. As a result, there will be a translation into growth per capita of 0.2 percent and 0.4 percent in 2023 and 2024-25 respectively; still not enough to reduce extreme poverty in citizens.
However, it was predicted that growth will continually be fostered by services, construction, agriculture, trade and manufacturing. There is a projection too that oil production will still be subdued in 2023 due to inefficiencies and insecurity; but will have slight recovery in 2024-25. Also, the mega-refinery project — that will contribute to the country’s economic growth — will receive support from industry by 5.6 percent. The economic performance of sub-Saharan Africa has been imbalance across sub-regions and countries.
Western and Central Africa GDP will drop to 3.4%.
An explanation in the report says the growth of the actual Gross Domestic Product (GDP) of the Western and Central Africa (AFW) sub-region is predicted to drop from 3.7 in 2022 to 3.4 percent this year. Likewise, Eastern and Southern Africa’s (AFE’s) Gross Domestic Product (GDP) has been predicted to decline from 3.5 percent in 2022 to 3.0 in 2023. Slow growth of the largest countries in the continent has visibly led to reduction of the economic performance of the region.
In South Africa, there is a tendency that there would be further weakening of economic activity by 0.5 percent, owing to the deepening energy crisis. In Nigeria, there is fragility of growth recovery — 2.8 percent — as oil production is yet to thrive well and diverse policy challenges confront the new administration. This situation poses a difficulty to policymakers in the region who work towards speedy improvement of the post-pandemic recovery, elimination of poverty and restoration of the economy on the path of sustainable growth.
Oil-rich countries experience more persistent downturn in investment.
Regardless of the economic fallout of the pandemic and the Russian-Ukraine war, there is an expectation that investment growth does not cease to be moderate and lower than the average growth rate of an investment over the past twenty years in sub-Saharan Africa and other emerging markets and under-developed countries. Oil-rich countries in the region have witnessed the most persistent downturn in investment, compared to countries with less abundant resources which display a more subdued decline in investments.
The report states that declining investment growth in sub-Saharan Africa is impeding long-term growth of output and per capita income, and achievement of sustainable development goals (SDGs). Poor investment growth contributes to macro-fiscal pressures, limited fiscal space, huge financing needs and increasing borrowing costs. Even domestic food prices have maintained highly inflated prices despite the gradual reduction in the prices of domestic food across the world. This is also coupled by weaker currencies, owing to inflate food and energy prices.
Countries with two-digit inflation will drop to 12.
Additionally, the World Bank’s report stated that there have been an increase in the number of countries with two-digit annual rate of inflation from 9 in 2021 to 21 in 2022. But the report affirmed that deceleration in aggregate demand, declining commodity prices, and the impacts of the monetary policy tightening across Africa will foster a reduction in inflation in the region to 7.5 percent in 2023 and 5.0 in 2024, next year. Likewise, there is an expectation that the number of countries with two -digit inflation will reduce to 12 this year.
Related Link
The World Bank: Website
Nigeria’s economic growth to improve by 3% – Sub-Saharan Africa’s economic performance has not been uniform. – Express your point of view.
Nigeria’s economic growth is expected to improve by 3% in 2021, driven by increased government spending, a boost in agricultural production, and rising oil prices. However, to sustain and accelerate this growth, the government needs to address other critical issues such as corruption, insecurity, and poor regulatory frameworks affecting various sectors of the economy.
Our economy growth to improve by 3% we should keep more so our economy can improve well and the country can be in standard level invest in sectors that will improve the economy well solving all kind of issue we are facing
It’s absurd that, despite a general decline in food prices around the world, our nation’s food costs have remained stubbornly high and are doing little to aid our population.
If our economic growth should increase it will be really wonderful for us and i genuinely wish it come to pass so we can actually prosper in the country.
Am sure the growth in Nigeria economy is a result of several government effort to diversify the economy and move from oil based to a multitude sectors generating base. We are getting there gradually.
This news is wonderful because at least it will increase the standard of living of so many people living in hunger and poverty and it will make so many households. The government finally did something good for once.
Lots still needed to be done if truly the economy of the country want to develop and be among her league across the world.The one way approach or one way income generation channel which is crude oil should be discouraged so as to bring more investment in other sector of the economy.
Nigeria’s economic growth to improve by 3%. Well, the economy growth of Nigeria is not really growing fine. We are more than growing Small like 3%.
3% growth is not really a significant growth but it’s nice to know that we are growing even if it’s at a slow pace. We should work toward having significant growth
Our economy growth had been depleting for a long time. I hope it will increase by 3% soon. When the economy is blooming, it will help make it easy for people’s business to thrive.
When the main problems of this country is not tackled, what we’re experiencing now will persist.The improvement of Nigerian economy by 3% is subject to some certain factors like services, construction, agriculture, trade and manufacturing. However, the underlying issues plaguing this country like insecurity corruption,maintenance bad practice, lack of basic necessities/amenities and government policies that unfavourable to the economy of the nation should treated before the nation can experience economical growth.
As predicted by the world bank that Nigeria will witness 3% economic growth provided services, construction, agriculture, trade and manufacturing are constantly running. However, far from that, the pressing challenges of the nation such as terrorism, fulani herdsmen attacks on farmers, corruption, and basic needs of the nation should be address before we can experience economic growth in the nation.