World Bank warns of challenges for new Nigerian government, lowers growth forecast

The World Bank Group (WBG) has listed a number of challenges that the incoming Nigerian government must address immediately. Speaking at a press briefing during the Spring Meetings of the Bretton Woods institutions in Washington D.C., WBG President David Malpass also announced a forecast growth rate of 2.8%, a drop from the bank’s earlier forecast of 2.9% and a significant decrease from its estimates for 2022 at 3.3%.

Malpass highlighted Nigeria’s over-reliance on the oil sector and the resulting poverty faced by many citizens due to global challenges in the industry, as well as the country’s struggle with insecurity across the northern regions. He also cited trade protection, a dual exchange rate that is expensive for Nigerians, high inflation, and insufficient economic diversification as key challenges.

Speaking more broadly about African economies, Malpass stated his hope that debt overhang and structural blockages in developing countries can be overcome to help them achieve faster growth rates and catch up with advanced economies. India, with a current growth rate of 6%, was cited as an example of a country with policies in place to generate faster growth.