The World Bank Group has once more revised downward its estimate of Nigeria’s economic growth, primarily due to a weakened oil sector. The projection indicates that Nigeria’s economy will continue to slow down, reaching 2.9% in 2023, and is not anticipated to grow at all in 2024.
The lender said specifically that Nigeria’s growth slowed to 3.1% in 2022 and would further slow to 2. 9% this year. The bank had reduced its economic forecast for Nigeria’s economic growth from 3.8% to 3. 1% just three weeks prior to the most recent projection.
According to the World Bank’s Nigeria Development Update report, Nigeria’s economy must expand more quickly to combat poverty. The report noted that inflation had surged to 21. 1 per cent in October 2022, pushing as many as five million more Nigerians into poverty since the start of 2022.
It further stated that despite higher oil export revenues, official reserves have fallen, and the currency market is severely distorted, undermining the business environment and investment.