Having cut Nigeria’s projected growth in its Nigeira Development Update to 3.1 per cent from 3.8 per cent last year, the World Bank has a slower growth of 2.9 per cent for Nigeria in 2023.
The World Bank, in its latest Global Economic Prospects released yesterday, said Nigeria’s slower growth for 2023 and 2024 is a reflection of the downturn in its oil sector as well as the aftermath of rising insecurity and flooding.
According to the Brenton Wood institution, Nigeria’s growth which is projected to decelerate to 2.9 percent in 2023 and remain at that pace in 2024 will be barely above population growth.
“A growth momentum in the non-oil sector is likely to be restrained by continued weakness in the oil sector. Existing production and security challenges, and a moderation in oil prices are expected to hinder a recovery in oil output.
“Policy uncertainty sustained high inflation, and rising incidence of violence are anticipated to temper growth. Growth in agriculture is expected to soften because of the damage from last year’s floods.
The fiscal position is expected to remain weak because of high borrowing costs, lower energy prices, a sluggish growth of oil production, and a subdued activity in the non-oil sectors,” it pointed out.
