World Bank reveals 5 key reasons for Nigeria's poor economic rating

Amid the towering global economic crises, the World Bank has issued a warning to Nigeria revealing five key issues which are a major cause of the country's continuous poor economic profile and its inability to attract domestic and foreign investments.

World Bank

In its report titled State Action on Business Enabling Reforms, the world bank noted that despite the fact that Nigeria had recovered from the most recent recession encountered, there was a worsening turnout in its welfare as the country still reflected a worsening economic outlook.

The report went ahead to highlight some key factors responsible for Nigeria's very low economic profile which include:

  • The Russian/Ukraine invasion which clearly has a negative impact on the global economy, 
  • Nigeria's inability to meet its production quota in oil production due to technical inefficiencies 
  • The huge spike in insecurity
  • Uncertainty on policy direction as the country prepares for the general elections next year.
  • Worsening fiscal risks related to the PMS subsidy deductions.

The bank report read in part, “Although Nigeria’s economy in 2021-2022 recovered from recession induced by the COVID-19 pandemic and lower oil prices, growing by 3.6 per cent in 2021 with an expected growth of 3.2 per cent in 2022, welfare has continued to deteriorate.

“The country’s economic outlook remains uncertain and threatened by many issues”

As of Sunday, September 25, 2022, the global price of Brent crude dropped as it fell by $4.31 or 4.76 percent to $86.15/barrel.

This price drop comes amid Nigeria's looming crises in the oil sector over its inability to meet its production quota as issues like oil theft, drop in rig count and low demand have deeply eaten deep into the industry.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

China reliefs Rwanda of $7.1 million debt

China reliefs Rwanda of $7.1 million debt

See how the oil boom in Uganda is increasing the demand for more skilled labor in the country

See how the oil boom in Uganda is increasing the demand for more skilled labor in the country

The Kenyan government has committed Sh600m to use in its fight against doping

The Kenyan government has committed Sh600m to use in its fight against doping

Orda raises $3.4 million seed round to digitise African restaurants

Orda raises $3.4 million seed round to digitise African restaurants

Private details of 5.4 million Twitter users up for sale in massive data breach

Private details of 5.4 million Twitter users up for sale in massive data breach

Top 3 crypto market trends for Africa in 2023

Top 3 crypto market trends for Africa in 2023

NDIC pays out N113.2 billion to customers of failed Nigerian banks

NDIC pays out N113.2 billion to customers of failed Nigerian banks

Top 5 fastest-growing economic-sectors in Nigeria in 2022

Top 5 fastest-growing economic-sectors in Nigeria in 2022

Burundi’s president reaches out to the Tanzanian Bank CRDB for the formation of a female and youth led economy

Burundi’s president reaches out to the Tanzanian Bank CRDB for the formation of a female and youth led economy

Get our Top Stories delivered to your inbox

Welcome to the Pulse Community! We will now be sending you a daily newsletter on news, entertainment and more. Also join us across all of our other channels - we love to be connected!