World Bank Says Buhari’s Economy will Grow by 2.5% this Year
Most likely, the inclement economics of the Buhari administration that has been a major source of pain for the electorate could turn around for the better this year. Already, the World Bank is projecting that Nigeria’s economy will grow by 2.5 per cent this 2022.
Going by its latest Global Economic Prospects report, the Bank cited higher oil prices and accelerated growth in telecommunication and financial services as some of the factors responsible for the rebound of the country’s economy.
In 2021, the Bank projected a 2.4 per cent growth for the Nigerian economy. It expected the global growth to decelerate markedly from 5.5 per cent in 2021 to 4.1 per cent in 2022, then 3.2 per cent in 2023.
“In Nigeria, growth is projected to strengthen somewhat to 2.5 percent in 2022 and 2.8 percent in 2023”, the report says, adding, “the oil sector should benefit from higher oil prices, a gradual easing of the Organisation of the Petroleum Exporting Countries (OPEC) production cuts, and domestic regulatory reforms.
“Activity in service sectors is expected to firm as well, particularly in telecommunications and financial services. However, the reversal of pandemic-induced income and employment losses is expected to be slow; this, along with high food prices, restrains a faster recovery in domestic demand.
“Activity in the non-oil economy will remain curbed by high levels of violence and 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 — just about 2 percent of the population, had been fully vaccinated by the end of 2021.”