World Bank: Nigeria’s economic growth to remain sluggish at 2.8% in 2023

The World Bank has predicted a 2.8% slow economic growth for Nigeria in 2023 ahead of a new government.

The global bank in its latest Africa report published on Wednesday stressed that Nigeria’s economy will underperform due to weaker local currency, foreign exchange scarcity, and rising inflation.

It also noted that Nigeria was underperforming on long-term growth rates due to weakening performance, especially in the non-oil activity and weak oil production.

Part of the report reads: “ “In Nigeria, oil production picked up in late 2022, thanks to improved security that has so far prevented further oil theft; however, production remains below the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) quota.

“Non-oil economic activity remained weak as the agriculture and industrial sectors experienced a rapid increase in the costs of energy and raw materials that were magnified by a weaker naira in the foreign exchange market.”

From May 29th, the responsibility of steering Nigeria’s economy towards a new growth path will rest on Bola Ahmed Tinubu’s shoulders.

Read also:World Bank projects 2.9% GDP growth for Nigeria’s economy

World Bank also predicted that sluggish growth will be experienced across sub-Saharan Africa because of uncertainty in the global economy.

It predicted that economic growth in Sub-Saharan Africa will decrease from 3.6% in 2022 to 3.1% in 2023 due to declining commodity prices and monetary policy tightening. Inflation is expected to decrease to 7.5% in 2023 and 5.0% in 2024.

“Inflation rates remain high and above targets despite the early and sizable interest rate hikes undertaken by African central banks. For instance, the monetary authorities in Ghana, Mozambique, Nigeria, South Africa, and Uganda, among others, raised their monetary policy rates swiftly to record highs over the past two years,” the report noted.

World bank further warned that “Consumer price inflation in Sub-Saharan Africa accelerated sharply and hit a 14-year record high in 2022 (9.2 per cent), fueled by rising food and energy prices as well as weaker currencies.”

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