IMF Downgrades Nigeria’s Economic Growth Prospects

The International Monetary Fund, IMF, has downgraded 2024 Nigeria’s economic growth prospects from 3.3 percent to 2.9 percent.

The Fund made the prediction in its World Economic Outlook report, citing factors such as inflation, flooding, and low crude oil production, amongst others for the downgrade.

Recall that the IMF had earlier in the year predicted over three percent economic growth for Nigeria, giving the current reforms as reasons.

The former prediction has now been reversed due to the factors mentioned above, the IMF said.

The Managing Director of the Fund  Kristalina Georgieva made this known during the 2024 Annual Meetings of the IMF and the World Bank Group in Washington, DC, on October 17.

The IMF boss however said the projections for the global economic growth remained unchanged at 3.1 percent.

According to her, “Nigeria’s economy in the first and second quarter of the year grew by 2.98% and 3.19% respectively amid a surge in inflation and further depreciation of the naira.

“The GDP growth rate in the first two quarters of 2024 surpassed the figure for 2023, representing resilience despite severe macroeconomic shocks with a spike in petrol prices and a 28-year high inflation rate.

“Nigeria’s inflation rate only began to slow down in July 2024 after 19 months of consistent increase dating back to January 2023.

“However, after two months of slowdown hiatus, inflation continued to rise on the back of an increase in petrol prices by the NNPCL in September,” she said.

Meanwhile, the magazine reports that President Bola Ahmed Tinubu, on Tuesday, launched the bid to grow Nigeria’s crude oil output significantly in the next 12 months by raising production by 1 million barrel per day.

The president said this will be achieved by harnessing dormant oil assets and optimising existing ones.