The World Bank Group (WBG) has listed a range of challenges that the incoming leadership of the Federal Government of Nigeria needs to address in the immediate term. In a press briefing at the ongoing Spring Meetings of the Bretton Woods institutions in Washington D.C., WBG President, David Malpass, also indicated that economic growth would be subdued this year, with a forecast growth rate of 2.8%, a further drop from its earlier forecast of 2.9%, and a significant drop from its estimates for 2022 at 3.3%.
Malpass said that Nigeria’s growth rate in 2022 was 3.3%, and 2.8% for 2023, which is within the WBG’s forecast. The World Bank’s high priority is shared prosperity in a sustainable way, and there are many changes that are needed to make that happen in Nigeria. Nigeria has a big chunk of its GDP coming from the oil sector, which means that many Nigerians are facing poverty due to the global difficulties in the sector as well as Nigeria’s peculiar challenges, and that needs to be a direct focus.
Nigeria also faces insecurity across the northern regions that are very challenging. The World Bank is working hard within Nigeria, but also working to try to have an economic system that can be more productive. Nigeria has trade protection that blocks market development, a dual exchange rate that is very expensive for the people of Nigeria, high inflation, and not enough diversification of the economy to make sufficient progress.
Speaking to the broader perspective of African economies that also affect Nigeria, Malpass said that the true success of the World Bank would be if countries could achieve sustained economic growth. He hoped that they could break through the debt overhang that’s weighing on countries and break through the structural blockages in many of the big developing countries where there is a slowdown in growth over the decade. Developing countries can grow at a 10% rate and catch up with advanced economies in a period of years and decades, as shown by China. India is showing that now with 6% growth, but with the aspiration of 8% per year growth based on policies that will generate faster growth, more electricity, access to clean water, and more investment in agriculture, which are the things needed by the countries.
Check out: FG, Google Bar Loan Apps in Nigeria from Accessing Customer’s Contacts and Photos