Global Development Prospect retains Nigeria’s growth projection of 2.8% for 2023

Nigeria’s anticipated growth rate for 2023 was kept at 2.8 percent in the Global Development Prospect report for June 2023 by the World Bank. The paper claims that the non-oil sector will be primarily responsible for this expansion, while the oil sector struggles with structural issues that cause output levels to fall below the OPEC quota.

Growth is expected to be hampered by currency shortages, exchange rate volatility, security issues, growing living costs, and constrained fiscal capacity. The nation’s financial needs are also anticipated to grow as a result of rising borrowing costs, less revenue from falling oil prices and production, and a generally weak domestic revenue mobilization. The predicted growth rate, according to the World Bank, is too slow to adequately reduce the country’s extreme poverty.

In order to solve this, the government should place a high priority on the expansion of the non-oil sector through targeted policies, incentives, and investments in order to lessen its reliance on the unstable oil sector and promote sustainable economic growth.

To alleviate foreign cash shortages, the government should look for ways to boost foreign currency inflows, such as by promoting exports, FDI, and remittances from the diaspora.

The nation’s security problems need to be prioritized in order to foster an environment that is conducive to economic activity. Growth will also be aided by increasing the tax base, enhancing tax administration and compliance, and promoting an open and transparent public financial management system.