Kurtis Adigba Logo

A recent released (January 2022) flagship report for 2022 by the World Bank, titled "Global Economic Prospects" (GEP) noted that Nigeria's economy under the Muhammadu Buhari led administration is worse than 10 years ago.

Flagship reports are reports published by the World Bank (and other such bodies) to share information about the work of the organization with the public.

It is a well-known fact that the pandemic has a huge negative impact on the world economy, but the report stated that the per capita income in some Sub-Saharan African countries is forecast to be lower in 2022 than a decade ago.

"The pandemic has reversed at least a decade of gains in per capita income in some countries — in almost a third of the region's economies, including Angola, Nigeria, and South Africa, per capita incomes, are forecast to be lower in 2022 than a decade ago."

the report stated.

Per capita income is a measure of the amount of money earned per person in a nation or geographic region.

Cost of Commodities

Furthermore, the report also submitted that high costs of commodities could inflate the damaging impact of increased poverty on economic growth in these countries.

In the year 2021, the report stated that nearly 110 million people in Sub-Saharan African countries were in situations characterized by food crises or worse.

It is suggested, according to the report, that food prices could soar due to supply chain disruptions, extreme weather events, or armed conflicts, leaving vulnerable groups suffering the most. If this continues, it would clinch household' purchasing power and wear away consumer confidence, causing more harm to economic growth and increasing poverty.

Read also: Campaign Finance Reform | A Key to Restoring

"Higher food prices could amplify the negative impact of increased poverty on economic growth. Last year, nearly 110 million people in SSA were in situations characterized by food crisis or worse — 40 million more than at the start of the pandemic, with over 60 per cent of these in just four FCS countries (Democratic Republic of Congo, Ethiopia, Nigeria, South Sudan...). Supply disruptions, extreme weather events, or armed conflicts could trigger surges in food prices, with vulnerable groups suffering the most... A further rise in food prices would squeeze households' purchasing power and erode consumer confidence, causing more subdued growth and hindering poverty reduction." the report stressed.

Living under $1.90

A study published by the Economic Community of West African States (ECOWAS), in contract with the West Africa Sub-Regional Office for the UN Economic Commission for Africa (UNECA) and the World Food Programme (WFP) stated that the vast magnitude of people living on less than $1.90 a day increased from 2.3 per cent to 2.9 per cent in 2021, and the heavy debt weight of countries (for example, Nigeria and Ghana) increased amidst slow economic recuperation, shrinking fiscal space and weak resource mobilisation.

Nigeria's Fiscal Policies Criticised

A World Bank's November edition of its Nigeria Development Update tagged "Time for Business Unusual" noted that poor choices of Nigeria's Central Bank exchange rate management policies discourage investments and fuel inflation.

However, according to the flagship report, the World Bank anticipates that Nigeria's economy will grow by 2.5 per cent in 2022, as it will profit from an increase in oil prices, a gradual alleviation of the Organisation of the Petroleum Exporting Countries (OPEC) production cuts, and other domestic regulatory reforms such as property registration, construction permits, entrepreneurship of small and midsized firms and many others.

Proudly designed by Webmatic Solutions