Thursday, July 18, 2024

Nigeria’s economy under Buhari worse than 10 years ago: World Bank

“Angola, Nigeria, and South Africa, per capita incomes are forecast to be lower in 2022 than a decade ago,” the report said.

• January 21, 2022
President Muhammadu Buhari
President Muhammadu Buhari

The World Bank has again noted that Nigeria’s economy under the Muhammadu Buhari administration is worse than 10 years ago.

These findings are contained in its flagship report for 2022, titled ‘Global Economic prospect’. 

“The pandemic has reversed at least a decade of gains in per capita income in some countries—in almost a third of the region’s economies, including Angola, Nigeria, and South Africa, per capita incomes are forecast to be lower in 2022 than a decade ago,” the report said. 

The report added that the hike in food prices could amplify the negative impact of increased poverty on economic growth, noting nearly 110 million people in countries like Nigeria, the Democratic Republic of Congo, Ethiopia, and South Sudan had been in situations characterised by food crises. 

The report also mentioned that disruptions to the supply chains or armed conflicts could contribute to surges in food prices, leaving vulnerable groups suffering the most. 

“Further rise in food prices would squeeze households’ purchasing power and erode consumer confidence, causing more subdued growth and hindering poverty reduction,” the report stressed. 

The findings from the global bank corroborate a study published by the Economic Community of West African States (ECOWAS), which revealed that many people living on less than $1.90 a day had jumped from 2.3 per cent to 2.9 per cent in 2021, and the debt burden of countries increased amid slow economic recovery, shrinking fiscal space and weak resource mobilisation.

Last year, the global bank had heavily criticised Mr Buhari’s fiscal policies, noting the negative effect of Nigeria’s Central Bank exchange rate policies on investments and fuel inflation.

However, the World Bank predicts that Nigeria’s economy will grow by 2.5 per cent in 2022, as it will benefit from an increase in oil prices, a gradual easing of the Organisation of the Petroleum Exporting Countries (OPEC) production cuts, and other domestic regulatory reforms.

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