As the World Bank Group, WBG, prepares to welcome the new leadership of the Federal Government, it has listed a series of challenges that need immediate attention in Nigeria. David Malpass, the WBG President, disclosed that the country's economic growth rate would be 2.8 per cent, lower than the earlier forecast of 2.9 per cent and significantly lower than its estimates for 2022 at 3.3 per cent.
Nigeria, being an oil-dependent economy, has a large proportion of its GDP coming from the oil sector. This has resulted in poverty and economic difficulties for the country due to global challenges in the sector and Nigeria's peculiar challenges. Insecurity is also a significant issue in the northern regions of the country, posing a severe threat to the citizens' well-being.
To tackle these challenges, the World Bank is working tirelessly within Nigeria to create a more productive economic system. According to the global lender, the country needs to diversify its economy to make sufficient progress, and trade protection that blocks market development needs to be addressed. The dual exchange rate that is costly for the people of Nigeria needs to be tackled. Inflation is also high, making it challenging to achieve sustainable economic growth.
The World Bank noted that Nigeria's challenges are not unique to the country but also affect other African economies. Malpass believes that the true success of the World Bank would be to have countries where people are doing well into the future. He hopes that the debt overhang that weighs on countries can be broken through, and structural blockages in many developing countries can be addressed.
Malpass urged countries to aspire to grow at a faster rate and catch up with advanced economies. Countries like China and India have shown that it is possible to grow faster and achieve significant economic progress. He emphasised the need for policies that will generate faster growth, provide access to electricity, clean water, and investment in agriculture, which are necessary for the countries' development.
Nigeria must address its economic challenges to achieve sustainable growth and improve its citizens' well-being. The World Bank is committed to collaborating with the new leadership of the Federal Government to establish a more productive economic system that would lead to shared prosperity in a sustainable manner.