Against the backdrop of the imminent assumption of office,
the World Bank Group, WBG, has given a long list of challenges that need to be
addressed in the immediate term by the new leadership of the Federal
Government.
The WBG President, David Malpass, in a press briefing at the
ongoing Spring Meetings of the Bretton Woods institutions in Washington D.C.,
United States of America yesterday, also hinted that economic growth would be
subdued during the year with a forecast growth rate of 2.8 per cent, a further
drop from its earlier forecast of 2.9 per cent and also a significant drop from
its estimates for 2022 at 3.3 per cent.
Malpass stated: “For Nigeria, the growth was 3.3 per cent in
2022 and 2.8 per cent for 2023 is within our forecast, and our high priority in
the World Bank is shared prosperity in a sustainable way. And so, as we think
about Nigeria, there are many changes that are needed in order to make that
happen.
“Nigeria has a big
chunk of its GDP coming from the oil sector and it means that a lot of people
in Nigeria are facing poverty due to the global difficulties in the sector as
well as Nigeria’s peculiar challenges, and that needs to be a direct focus.
“And they (Nigeria) also face insecurity across the northern
regions that are very challenging. And so, the World Bank is working hard
within Nigeria but also working to try to have an economic system that can be
more productive.
“Nigeria has trade protection that blocks market
development; they have a dual exchange rate that is very expensive for the
people of Nigeria; they have high inflation and not enough diversification of
the economy to really make sufficient progress”.
Speaking to the broader perspective of African economies
also affecting Nigeria, Malpass said, “I wanted to give you the context for
Nigeria, Egypt, and for other countries where we wish that the true success of
the World Bank would be if there can be countries where the people are doing
well into the future. And that I think is going to make a substantial change in
the world.
“My hope would be that we can break through on the debt
overhang that’s weighing on countries and also break through the structural
blockages in so many of the big developing countries where rather than
converging and having their growth go up faster than the advanced economies
which would be their goal there is a slow down over the decade.
“Showing up like China, developing countries can grow at a
10 percent rate and catch up with advanced economies in a period of years and
decades. India is showing that now with 6 percent growth but with the
aspiration of 8 per cent per year growth based on policies that will generate
faster growth, more electricity, access to clean water, and more investment in
agriculture, the things that are needed by the countries.”
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