The World Bank’s January 2024 Global Economic Prospects report predicts a return of Nigeria’s per capita income to pre-pandemic levels by 2025.
Per capita income, measuring average earnings per person, is anticipated to rebound, reflecting the gradual impact of government-led macro-fiscal reforms. Despite a softened growth of 2.9% in 2023, influenced by factors like disruptive currency demonetization policies affecting services growth, there was a positive uptick in annual oil production after previous declines.
The report highlights the expected drivers of future economic growth in Nigeria, citing sectors such as agriculture, construction, services, and trade. The government’s macro-fiscal reforms are poised to play a crucial role in this gradual improvement.
Additionally, the projection suggests a gradual easing of inflation as the effects of last year’s exchange rate reforms and the removal of fuel subsidies diminish over time.