By Uche Mbah
Unless there is a concerted effort by Nigerian leaders to create jobs and revive economic growth, Nigeria will account for 25% of the World Poor Population by 2029, says the World Bank.Based on current indices, the Nigerian economy is expected to expand marginally by 2.1% in 2020 and 2021, but this will be swallowed by the 2.6% population growth rate.
This was part of the report published Monday by the international finance institution.
According to the Bank, Nigeria should shore up domestic revenue, remove trade restrictions and improve predictability of economic policy. Part of the recommendations were that President Buhari should deregulate the Downstream Petroleum sector by removing Fuel subsidy. The Central bank lending rate should be reviewed in favor of non-banking sectors.The IMF Wednesday had warned of the strangulating debt overhang being encouraged by the Nigerian government. Ironically, Nigeria is about to borrow $30 billion to fund infrastructural development. Currently it expected to spend more tha two trillion Naira for debt servicing, according to the 2020 budget.
Nigeria is a top Oil producer in Africa, and ironically a top importer of finished petroleum products. Government has over the years claimed that they are subsidizing the importation of the finished products, though the whole scheme has been seen as fraudulent by critics.
Nigeria has appeared to be cover action with propaganda in the reportage of the actual situation of the economy. The Bank had warned that the cost of inaction “is significant”.
“Under Business as Usual scenario, where Nigeria maintains the current pace of growth and employment levels, by 2030 the number of Nigerians living in extreme poverty could increase by more than 30 million”.
Currently, about 100 million Nigerians are living below poverty line. Only last year, Nigeria overtook India as the poverty capital of the world.
Nigeria slid into recession in 2016, and if the price of oil falls below$50 a barrel, Nigeria may slide again into recession, the Bank said.
