Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Nigerian growth lags Africa, poverty rising, says World Bank

06/15/2021 | 01:03pm EDT
Cars drive along a street in Abuja

ABUJA (Reuters) - Nigerian economic growth has resumed after the COVID shock but is lagging the rest of sub-Saharan Africa, with food inflation, heightened insecurity and stalled reforms slowing growth and increasing poverty, the World Bank said on Tuesday.

Presenting its six-monthly update on development in Africa's most populous country, the organisation gave a GDP growth forecast for Nigeria of 1.9% in 2021 and 2.1% in 2022, compared with 3.4% this year and 4.0% next year for sub-Saharan Africa.

Lead economist for Nigeria Marco Hernandez said inflation, especially in food prices, was exacerbating poverty and food insecurity. Food accounted for almost 70% of Nigeria's total increase in inflation over the past year.

He said the COVID-induced crisis was expected to push over 11 million Nigerians into poverty by 2022, taking the total number of people classified as poor in the country to over 100 million. The total population is estimated at 200 million.

The World Bank expects the Nigerian inflation rate in 2021 to be 16.5%. The forecast for sub-Saharan Africa, excluding Nigeria, is 5.9%.

Hernandez said increased insecurity across the nation -- ranging from mass abductions at schools, kidnappings for ransom, armed conflict between herdsmen and farmers, armed robberies and various insurgencies -- was a drag on growth and job creation.

He said it was critical for the government to maintain reform momentum, but that some important reforms had stalled.

He cited petrol subsidies, which have recently returned after the government had established a market-based pricing mechanism, and electricity tariff reform, an area where planned adjustments to bring prices in line with costs have been paused.

Hernandez said Nigeria had the largest number of people without access to electricity in the world, and that electricity subsidies benefited mainly richer households. Only 22% of the poorest households have access to electricity, while 82% of the richest are able to access power.

(Reporting by Estelle Shirbon and Chijioke Ohuocha; Editing by Catherine Evans, William Maclean)


© Reuters 2021
Latest news "Economy & Forex"
07/25East China braces for typhoon In-fa after flooding in country's centre
RE
07/24PRIME MINISTER OFFICE OF SINGAPORE : DPM Heng Swee Keat at the National Economics and Financial Management Challenge 2021
PU
07/24ECLAC : Latin America and the Caribbean Should Develop Regional Platforms for Producing and Distributing Vaccines and Medicines
PU
07/24Tokyo Olympics opening draws 16.7 million U.S. TV viewers, a 33-year low
RE
07/24U.S. judge rules Lithium Americas may excavate Nevada mine site
RE
07/24Robinhood CEO says he is considering offering U.S. retirement accounts
RE
07/24UK will be exposed to paying pandemic cost risks for decades-report
RE
07/24FISCAL POLICY HAS KEY ROLE IN GREEN DEVELOPMENT : vice-minister
PU
07/24MCX MULTI COMMODITY EXCHANGE OF INDIA : reports Net Profit of 39.80 cr. in Q1 FY21-22
PU
07/24U.S. CDC Reports Total Novel Coronavirus Cases Of 34,380,019 As Of July 23
RE
Latest news "Economy & Forex"