The Global Economic Prospects, World Bank, has foreseen that production challenges in Nigeria’s oil sector will persist and affect growth.
According to the report released in Washington DC, the United States yesterday, the country’s growth is projected to edge up to 3.4 percent in 2022 but will soften to 3.2 percent in 2023 and 2024.
The report was titled ‘Stagflation Risk Rises Amid Sharp Slowdown in Growth’.
It adds that stronger growth this year reflects support from elevated oil prices, recovery in agriculture and manufacturing, and structural reforms, such as the Petroleum Industry Act of 2021.
“Production challenges in the oil sector are expected to persist, weighing on growth. A recovery in non-oil sectors is envisioned to continue, although shortages of fuel and higher food prices would restrain growth.
“Four in ten Nigerians live below the poverty line, with many more at risk of falling into poverty and becoming food insecure. Increases in food prices would further erode domestic demand,” the report says.
The report adds that although forecasts for 2022 and 2023 have been unchanged for Nigeria, Angola, and South Africa, regional growth has been revised down by 0.4 percentage points this year.
