The World Bank has predicted that Nigerian Gross Domestic Product will grow by 3.7 per cent in 2025.
The World Bank in its latest report titled “Global Economic Prospect: Subdued Growth, Multiple Challenges”, projected that the African largest economy will improve by 3.3 per cent up from a projected 2.9 per cent for 2023.
The report said, “Growth in Nigeria is projected at 3.3 per cent this year and 3.7 percent in 2025 up 0.3 and 0.6 percentage points, respectively, since June as macro-fiscal reforms gradually bear fruit.
“The baseline forecast implies that per capita income will reach its pre-pandemic level only in 2025.”
The Washington-based bank attributed the momentum to the gradual realisation of the current macro-fiscal reforms.
Since the assumption of office by President Bola Tinubu, he has initiated some reforms, which include the removal of fuel subsidies and foreign exchange rate harmonisation, with a focus on infrastructure development, manufacturing, and technology.
The multilateral bank said that the country’s economic growth will be driven by agriculture, construction, services, and trade.
According to the 2023 State of Global Food and Nutrition Security, the number of Nigerians facing food insecurity has increased by 133 per cent in three years. The figure surged from 63.8 million people between 2014 and 2016 to 148.7 million people between 2020 and 2022.
“Inflation should gradually ease as the effects of last year’s exchange rate reforms and removal of fuel subsidies fade. These structural reforms are expected to boost fiscal revenue over the forecast period,” the World Bank declared.
It acknowledged that the Nigerian economy softened to an estimated 2.9 per cent in 2023 due to the disruptive currency demonetisation policy, which involved replacing old high-denomination naira notes.
