World Bank: Borrowing Costs Weakens Nigeria Fiscal Position.
According to the World Bank, Nigeria’s fiscal situation is weakened by high borrowing costs, falling energy prices, a slow increase in oil production, and muted activity in the oil sector. The Washington-based bank also predicted that Nigeria’s growth would slow further this year, to 2.9%, from 3.1% in 2022.
The bank noted that a number of factors, including low oil output, insecurity, fuel subsidies, and a lack of foreign currency, among others, limit the country’s ability to grow.
“The bank also pointed out that the poor economic growth of 2.9% in 2023 will barely surpass population growth, which is typically estimated to be around 2.5% in earlier studies.
The report also said, “Growth in Nigeria is anticipated to slow to 2.9 percent in 2023 and remain at that pace in 2024—barely above population growth.
It added that increased insecurity has worsened fragility and is expected to reduce access to food for many more people across the region, further weighing on economic recoveries.