According to World Bank projections, Nigeria’s GDP is forecast to grow by 3.3% this
year, which is around 0.4 percentage points higher than the 2.9% growth predicted for
the previous year.
While sub-Saharan Africa (SSA) is expected to develop by 3.8%, the projection is only
marginally higher than the predicted global average of 2.3%.
The World Bank continues to be optimistic about Nigeria in its World Economic Prospect
(GEP), predicting further growth to 3.7% in the coming year—a percentage point or more
above the rise of world GDP.
The global bank’s growing optimism about the economy’s prospects since downstream oil
and foreign exchange reforms began in the middle of last year is confirmed by the most
recent projections for 2024 and 2025, which are significantly higher than the June forecasts
of three and 3.1 percent, respectively.
The macro-fiscal changes that were initiated in June, according to the bank, are starting to
show results. By 2025, per capita income is expected to return to what it was before the pandemic. It was mentioned that trade, services, construction, and agriculture will be the key
drivers of growth.
The structural reforms are anticipated to increase fiscal income, and the research predicts
that Nigeria’s inflation would “gradually ease as the effects of last year's exchange rate
reforms and removal of fuel subsidies fade.”
“Growth in Sub-Saharan Africa is anticipated to pick up speed to 3.8 percent in 2024 and
solidify to 4.1 percent in 2025 as financial conditions loosen and inflationary pressures
subside. Although these totals conceal a mixture of upgrades and downgrades at the
national level, the predictions for regional growth in 2024 and 2025 are not significantly
different from the expectations released in June."
“Economies without abundant natural resources are predicted to continue growing at a rate
higher than the regional average, even if the biggest economies in SSA are predicted to
expand at a slower rate than the rest of the area. Growth in the region is predicted to pick up
speed from 3.9% in 2023 to 5% in 2024 and a further 5.3% in 2025, excluding the three
biggest SSA economies, the report claimed.
It issued a warning, saying that if appropriate action is not taken, the rising geopolitical
tensions may bring new risks to the global economy soon.
“The 2020s will be seen as a decade of lost potential unless there is a significant shift in
direction. Short-term growth will continue to be feeble, trapping many emerging nations,
particularly the poorest, in crippling debt and precarious food access for almost one in three
people.”
That would hinder the advancement of numerous global goals. There are yet chances to
change the course.
“This research provides a clear path forward: it spells out the transformation that can be
realized if governments move now to accelerate investment and enhance fiscal policy
frameworks” said Gill Indermit, Senior Vice President and Chief Economist of the World
Bank Group
