World Bank cut Nigeria’s growth forecast, predicts financial crises

The World Bank has cut Nigeria’s economic growth forecast for 2022 while painting a depressing picture of the finances of Nigeria.

In its biannual Africa’s Pulse report released on Tuesday, the World Bank said Nigeria’s economy will now grow at 3.3% from 3.8% it earlier forecasted.

It also revealed that Africa’s most populous nation will see its debt service-to-revenue ratio surge to 102.3%.

Read also: World Bank offers support to end fuel subsidy in Nigeria

“Public debt in Nigeria is a concern,” the World Bank said in the report. “The combination of low production in the oil industry and unsustainable subsidies is one of the main obstacles to attaining debt sustainability.”

Unlike Nigeria, the World Bank says fellow oil-producing country, Angola’s public debt will decline to 61.9% of gross domestic product this year from 85.7% in 2021.

It also said Angola will expand 3.1% this year from 0.8% in 2021, thanks to rising oil prices.

The World Bank also expects the Sub-Saharan African region’s economic growth to slow to 3.3% in 2022 from 4.1% last year.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now