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The World Bank has projected that Nigeria’s inflation rate will remain elevated at 24.8 percent year-on-year in 2024, according to its latest report released yesterday.
While this projection indicates a slight decrease from February 2024’s inflation rate of 31.7 percent, the World Bank emphasized that inflation will remain at concerning levels.
The institution also reiterated its forecast of 3.3 percent economic growth for Nigeria in 2024, with a slight reduction in the projection for 2025 to 2026 to 3.6 percent, down from the previously estimated 3.7 percent in January.
In its April 2024 edition of the Africa’s Pulse Report, the World Bank stated that Nigeria’s economic growth will gradually improve as macroeconomic and fiscal reforms begin to yield results. However, it emphasized the need for structural reforms to foster higher growth.
The report highlighted that while the oil sector is expected to stabilize with a recovery in production and slightly lower prices, sustained but slow growth is anticipated in the non-oil economy.
Regarding inflation, the World Bank foresees average inflation remaining high at 24.8 percent in 2024, gradually easing to 15.1 percent by 2026. This easing is expected to result from monetary policy tightening and exchange rate stabilization.
The report also pointed out that food inflation and currency depreciation continue to be significant drivers of inflation across Sub-Saharan African countries. About one-third of the region’s countries experienced double-digit year-on-year food inflation rates by February 2024.
Moreover, the report highlighted the slow rate of poverty reduction in the region, particularly in Nigeria and the Democratic Republic of Congo, where one in three people live in extreme poverty. It emphasized the importance of addressing structural inequality to accelerate growth and poverty reduction in the region.
In conclusion, the World Bank emphasized the urgent need for concerted efforts to tackle inflation, foster economic growth, and alleviate poverty in Nigeria and across Sub-Saharan Africa.
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