Emmanuel OchayiThe World Bank’s latest Global Economic Prospects report paints a hopeful picture for Nigeria’s economic resurgence, forecasting a return to pre-pandemic per capita income levels by 2025.
Speaking on the country’s prospects, World Bank analysts emphasized the gradual positive impact of the government’s macro-fiscal reforms initiated in recent years.
“Nigeria’s growth is projected at 3.3% this year and 3.7% in 2025,” highlighted the report, reflecting an increase of 0.3 and 0.6 percentage points from earlier estimates in June.
Despite challenges posed by policies like the removal of the gasoline subsidy and exchange rate unification, deemed crucial for long-term economic stability, the reforms are expected to yield fruit.
However, Nigeria’s economic growth in 2023 was tempered at an estimated 2.9%, influenced by factors such as a disruptive currency demonetisation policy and service sector weaknesses. Yet, there were positive notes, including a rebound in annual oil production following previous declines.
Looking ahead, the Bank anticipates growth primarily fueled by sectors like agriculture, construction, services, and trade.
Additionally, as effects from last year’s exchange rate reforms and fuel subsidy removal diminish, inflation is projected to gradually ease.
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The Sub-Saharan African region, encompassing Nigeria, experienced a deceleration in growth to an estimated 2.9% in 2023, underscoring challenges faced by the region’s largest economies—Nigeria, South Africa, and Angola—whose growth slowed to an average of 1.8% in the same year.
Despite these challenges, the World Bank remains optimistic, foreseeing Nigeria’s economy on an upward trajectory, guided by sustained reforms and sectoral advancements, aiming for a return to pre-pandemic economic levels by 2025.
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