UN Highlights Downward Risks to Nigeria’s Growth in 2024
The United Nations, in its ‘World Economic Situation and Prospects 2024’ report, has revealed that Nigeria faces downward risks to its growth prospects.
Despite recent government reforms, including those in the hydrocarbon sector, contributing to a forecasted GDP growth of 3.1% in 2024, challenges such as rising public debt, persistent inflation, high living costs, and a weak business environment remain significant concerns.
The report emphasizes that ballooning public debt, ongoing inflation, and the increasing cost of living, coupled with a less favorable business environment, pose threats to the country’s economic growth.
The UN acknowledges the government’s efforts to boost in-country oil refining capacity, anticipating a potential reduction in domestic fuel costs in 2024 and beyond as a positive step.
Notably, the report extends its analysis to broader trends in Africa, highlighting deteriorating fiscal positions for many African countries in 2023 due to high public debt and a low domestic revenue base. The economic outlook for the continent is clouded by debt, persistent inflation, climate risks, and political uncertainties.