Nigeria’s per capita income is expected to reach its pre-pandemic level by 2025, according to World Bank projections.
“Growth in Nigeria is projected at 3.3 percent this year and 3.7 percent in 2025—up 0.3 and 0.6 percentage points, respectively, since June—as macro-fiscal reforms gradually bear fruits. The baseline forecast implies that per capita income will reach its pre-pandemic level only in 2025,” the report said.
The report added, “Growth is expected to be driven mainly by agriculture, construction, services, and trade. Inflation should gradually ease as the effects of last year’s exchange rate reforms and removal of fuel subsidies fade,”
This prediction coincides with the country’s economy being predicted by the bank’s January 2024 Global Economic Prospects report to gradually improve over the next several years.
The economy of the Sub-Saharan African area, which includes Nigeria, slowed down to an anticipated 2.9% in 2023. This was mostly because of issues unique to Nigeria, such as increased input costs for companies operating there.
The growth rates of the three biggest economies in the area, Angola, South Africa, and Nigeria, decreased to an average of 1.8% in 2023.
The largest economy in Sub-Saharan Africa, Nigeria, had its growth slow down to an expected 2.9% in 2023—a figure that was less than anticipated.
Nigeria’s growth in 2023 was predicted to have slowed to 2.9% due to a number of issues, including the weakening of services growth as a result of a disruptive currency demonetization strategy.
Nonetheless, after declining in prior years, yearly oil output increased. Nigeria’s GDP is expected to expand by 3.3% and 3.7% in 2024 and 2025, respectively.
This improvement is anticipated as a result of the government’s progressive implementation of macro-fiscal reforms.
The elimination of the fuel subsidy and the unification of the currency rate are two major measures that, although posing temporary difficulties, are thought to be essential for long-term economic stability and expansion.
It is anticipated that industries including commerce, services, construction, and agriculture will propel growth in the upcoming years.
Furthermore, it is anticipated that inflation will progressively decrease as the consequences of the fuel subsidy reduction and exchange rate adjustments from the previous year wear off.
To improve economic prospects, the World Bank research emphasizes how critical it is to keep up the reform pace and unify monetary and fiscal policy.
