NIGERIA: Nigeria’s economy is expected to rise by 2.5 per cent in the current year and by 2.8 per cent in 2023. World Bank Group President, David Malpass, stated this in Washington DC at January’s Global Economic Prospect report.
Malpass added that despite the global challenge faced due to the COVID-19 outbreak Nigeria will still witness a surge in its economic sector.
There is a possibility of deceleration in global growth markedly from 5.5 per cent in 2021 to 4.1 per cent this year and 3.2 per cent in 2023, Malpass said in a statement.
However, Malpass also said that Nigeria’s oil sector will be the most successful sector due to an increase in oil price from the Organization of the Petroleum Exporting Countries (OPEC) production cuts, and domestic regulatory reforms. And businesses in the telecommunication and banking sectors are expected to beef up.
Malpass, therefore, added that job loss and pandemic related issues will be minimal as high costs in food prices will contribute drastically to the increase in the economic recovery.
Malpass further pointed that activities in the non-oil economy will remain curbed by high levels of violence, social unrest as well as the threat of fresh COVID-19 flare-ups with remaining mobility restrictions being lifted guardedly because of low vaccination rates.
Malpass also said that the government’s continuous borrowing will contribute to slowness in the policy formulation and as such it will leave gaps for public services and infrastructural development.
A rise in inequality, rise in inflation, debt, income inequality, and security challenges have a devastating effect on the development of every developing country in which Nigeria is inclusive, Malpass added.