The World Bank has revealed that the Nigerian economy will grow by an estimated value of 2.5% in 2022 and 2.8% in 2023, increasing by 0.1% from 2021 to 2022.
The international financial institution expects increase in oil prices and businesses in the service sector (Information and Communication Technology sector & Financial Services sector) to catalyze economic growth.
In the World Bank’s global economic prospects report, the oil sector is predicted to benefit from surging oil prices and service sector activities will initiate progressive growth trend.
Texts from the report ,“In Nigeria, growth is projected to strengthen somewhat to 2.5 per cent in 2022 and 2.8 per cent in 2023.
“The oil sector should benefit from higher oil prices, a gradual easing of the Organisation of the Petroleum Exporting Countries production cuts, and domestic regulatory reforms. Activity in service sectors is expected to firm as well, particularly in telecommunications and financial services.”
It was, however, stated that the recovery from pandemic-induced income, employment losses, and inflation would be slow.
The report further delineated that COVID-19 variants (OMICRON) alongside insecurity and social disruption will hinder non-oil sector activities
“However, the reversal of pandemic-induced income and employment losses is expected to be slow; this, along with high food prices, restrains a faster recovery in domestic demand.
“Activity in the non-oil economy will remain curbed by high levels of violence and social unrest, as well as the threat of fresh COVID-19 flare-ups with remaining mobility restrictions being lifted guardedly because of low vaccination rates — just about 2 per cent of the population, had been fully vaccinated by the end of 2021,”
The world banks publication also estimated a decline in per capita income in 2022 in Nigeria, South Africa and Angola.
The report read, “After barely increasing last year, per capita incomes are projected to recover only at a subdued pace, rising 1.1 per cent a year in 2022-23, leaving them almost 2 per cent below 2019 levels.
“In South Africa and Nigeria, per capita incomes are projected to remain more than 3 per cent below pre-pandemic levels in 2023.”