World Bank Says Nigeria’s Economic Outlook Uncertain.
The World Bank has said that Nigeria’s economic outlook is uncertain and its ability to attract domestic and foreign investments is also crashing.
It also noted that the condition of welfare in Nigeria was worsening despite Nigeria’s economic recovery from recession.
The World bank made this known in its draft report for State Action on Business Enabling Reforms, which is available on its website.
Part of the report states that,
“Although Nigeria’s economy in 2021-2022 recovered from recession induced by the COVID-19 pandemic and lower oil prices, growing by 3.6 percent in 2021 with an expected growth of 3.2 percent in 2022, welfare has continued to deteriorate.
“The country’s economic outlook remains uncertain and threatened by many issues including the impact of the 2022 Russian invasion of Ukraine on the global economy, lower-than-expected oil production due to technical inefficiencies; heightened insecurity; higher uncertainty on policy direction arising from the upcoming February 2023 general elections; and worsening fiscal risks related to the PMS subsidy deductions.”
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The global lender stressed the need to catalyze private investment in order to boost growth and create jobs, noting that this type of investment was declining in the country.
The bank said, “Besides, Nigeria’s ability to attract domestic and foreign investment is low and declining compared to its peers. Private sector investment’s contribution to growth has declined as a consequence of macroeconomic and financial policies that constrain exports and foreign investment.”
The World Bank further emphasized the need for a more flexible and transparent foreign exchange management regime, accelerated revenue-based fiscal consolidation, strengthened expenditure and debt management, and an improved business-enabling environment.
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