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World Bank has reported that the below-average growth in Nigeria will hinder the economic performance of the sub-region.
According to the Washington-based lender, economic activities in the region are expected to increase from 3.2 percent in 2023 to 3.7 percent in 2024 and further accelerate to 4.2 percent in 2025–2026.
The report noted that Nigeria’s lower-than-average growth will affect the subregion’s performance.
Excluding Nigeria, the AFW sub-region is projected to grow by 4.4 percent in 2024 and 5 percent in 2025–2026.
Additionally, economic activities in the West African Economic and Monetary Union are projected to increase by 5.9 percent in 2024 and 6.2 percent in 2025 due to the strong performances of Benin, Côte d’Ivoire, Niger, and Senegal.
The World Bank explained that Nigeria's growth is projected at 3.3 percent in 2024 and 3.6 percent in 2025–2026 as macroeconomic and fiscal reforms gradually yield results.
The report also mentioned that the oil sector is expected to stabilize with a recovery in production and slightly lower prices.
The report highlighted the need for structural reforms to foster higher growth, and it anticipates average inflation to remain elevated at 24.8 percent in 2024, gradually easing to 15.1 percent by 2026 due to monetary policy tightening and exchange rate stabilization.
Furthermore, economic activities in Côte d’Ivoire are expected to improve by 6.6 percent in 2024 and remain steady at 6.5 percent in 2025–2026.
The Central Bank of West African States could boost private consumption by implementing a more accommodating monetary policy.
Economic activity is expected to rise with the development of the offshore Baleine Oilfield, leading to increased oil production and exports. Additionally, reforms in the business environment are anticipated to drive up investments in agriculture, manufacturing, and telecommunications.
The National Bureau of Statistics, in 2022, reported that 63 percent of Nigeria's population (133 million people) were multi-dimensionally poor, lacking access to health, education, and living standards, in addition to facing unemployment and shocks.
The report also highlighted that over half of Nigeria's population was multi-dimensionally poor, with higher rates in rural areas (72 percent) compared to urban areas (42 percent).
Sub-Saharan Africa has struggled with volatile economic growth, deeper and longer recessions, and extreme poverty and inequality levels.
The region's economic expansion has been slower than in the previous decade and has not significantly impacted poverty reduction.
