World Bank Pegs Nigeria’s 2018 GDP Growth At Under 2%
Things are not looking up yet for the Nigerian economy, at least that is what the World Bank thinks.
The international lender said on Wednesday that it expects Nigeria’s economy to grow slightly less than 2% this year, largely driven by the non-oil industry and services sectors, as the approach of elections keeps foreign investors away.
“Nigeria’s emergence from recession remains sluggish, and sectoral growth patterns are unstable. In the second quarter of 2018, the oil sector contracted by 4.0%,” the bank said in a statement.
GDP grew by 0.83% last year after shrinking by 1.58% in 2016, its first annual contraction in 25 years. For this year, Nigeria’s central bank is projecting growth of 1.75%.
The World Bank said growth in the farm sector, which has been resilient in the past, had slowed to 1.2% under the impact of security challenges in the north.
The World Bank said non-oil industry and services, which make up more than half of Nigeria’s economy, had been boosted by growth in construction, transport and communication technology.
But it said investment in human capital, which the government has been seeking to boost, remained low compared with other countries.
Nigeria is largely dependent on its oil sector for government revenues and foreign exchange, but it has been constrained by a subsidy on petrol and other deductions, the bank said, noting that foreign investment was stagnant.
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