Inflation pushes 5m into poverty, wage value down 35%

The World Bank has said that Nigeria is in a worsening situation, with economic performance becoming weaker as inflation persists.

The Washington-based bank said this in its newly released Nigeria Development Update, which was launched in Abuja on Thursday alongside the Nigeria Country Economic Memorandum.

The NDU report noted, “Nigeria is in a challenging and deteriorating economic situation. Nigeria’s economic performance has weakened since the previous Nigeria Development Update was published in June 2022 under the title of ‘The Continuing Urgency of Business Unusual’.”

The financial institution also cut Nigeria’s 2022 growth forecast to 3.1 per cent from a previous forecast of 3.8 per cent.

It said that the revision was due to slow economic growth in the third quarter from a year earlier, dragged down by the oil sector and a weak performance in other areas of the economy.

The bank further forecast growth to slow by 2.9 per cent in 2023.

The report read, “Nigeria’s economic output growth has slowed and the World Bank is lowering its growth projections. Real gross domestic product at market prices growth in the third quarter of 2022 was 2.4 percent year-on-year, on the back of a continued contraction in oil output (-22.7 per cent y-o-y) and slowing non-oil growth (4.3 per cent y-o-y, down from 4.8 per cent y-o-y in Q2 2022).

The World Bank now projects that real GDP will grow by 3.1 per cent in 2022 and 2.9 per cent in 2023–24, 0.3 of a percentage point lower than the previous projections at the time of the June 2022 NDU.”

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