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WBG says Nigeria’s economic recovery is fragile, as acting president receives 2017 budget
The 2017 budget of Nigeria has been predicated on to bring the country out of its poor economic state and put on the growth path.
The World Bank Group
In a statement released by the international development bank in Abuja on Friday, May 19, 2017, the cross-country analysis of the determinants of growth carried out on Nigeria highlights the importance of sound macroeconomic management and stability for growth, while confirming that inflation, government consumption, and currency misalignment (overvaluation) are negatively correlated with growth.
In the same vein, Senator Ita Enang, Senior Special Assistant to the President on Senate Matters said the record 7.44 trillion naira ($23.62 billion) 2017 budget had been sent to Acting President, Prof. Yemi Osinbajo after being passed by parliament.
Speaking on the World Bank Economic Outlook for Nigeria, Mr Rachid Benmessaoud, World Bank Country Director for Nigeria noted that “the Economic Recovery and Growth Plan (ERGP), if implemented successfully, would lead to expanded transportation infrastructure, the increased reliability of supply of power by restoring financial viability to the power sector, an improved business environment, improved educational attainment, strengthened public institutions, and improved transparency and anti-corruption.”
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In 2016, Nigeria experienced its first full year of recession in 25 years occasioned by the drop in global oil prices and oil production crushed caused by vandalism and militant attacks in the Niger Delta.
This resulted in resulted in the severe contraction of oil GDP, which is accounted for over seventy-five percent of the government revenue and ninety percent of the country’s foreign exchange earnings.
The World Bank’s newly-released Bi-annual Economic Update also noted that “Nigeria can build on the oil-driven economic recovery anticipated for it in 2017 by strengthening its macroeconomic policy framework and implementing the structural reforms needed to diversify the economy and break out of a boom and bust cycle.”
This report was noted to have replaced all previous Nigeria economic reports and outlooks published on the annual basis.
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