In light of the impending assumption of office, the World Bank Group, WBG, has issued a comprehensive list of challenges that the new Federal Government leadership must solve in the short term.
In a press conference yesterday at the ongoing Spring Meetings of the Bretton Woods institutions in Washington D.C., United States of America, WBG President David Malpass also hinted that economic growth would be subdued during the year, with a forecast growth rate of 2.8 percent, a further decrease from its earlier forecast of 2.9 percent and a significant decrease from its estimates for 2022 at 3.3 percent.
“For Nigeria, growth of 3.3 percent in 2022 and 2.8 percent in 2023 is within our forecast, and our main focus at the World Bank is shared prosperity in a sustainable way,” Malpass said. As a result, when we consider Nigeria, several modifications are required to make it happen.
“Nigeria derives a large portion of its GDP from the oil sector, which means that many Nigerians are impoverished as a result of worldwide troubles in the sector as well as Nigeria’s unique concerns, and this needs to be a direct focus.”
“They (Nigeria) also face very challenging insecurity across the northern areas.” As a result, the World Bank is working hard not only within Nigeria but also to create a more productive economic structure.
“Nigeria has trade protection that stifles market development; they have a dual exchange rate that is too expensive for Nigerians; they have excessive inflation and not enough economic diversification to truly make adequate progress.”
“I wanted to give you the context for Nigeria, Egypt, and other countries where we wish that the true success of the World Bank would be if there can be countries where the people are doing well into the future,” Malpass said, speaking to the broader perspective of African economies affecting Nigeria. And I believe it will have a significant impact on the planet.
“My hope is that we can break through the debt overhang that is weighing on countries, as well as break through the structural blockages in so many of the big developing countries, where instead of converging and growing faster than the advanced economies, which is their goal, there has been a slowdown over the decade.”
“Developing countries, like China, can grow at a 10% annual rate and catch up with mature economies over years and decades.” India is doing this currently with 6% growth, but with an aim of 8% per year growth based on policies that will bring quicker growth, more energy, access to clean water, and increased agricultural investment, all of which are needed by the countries.”