x

World Bank Projects 2.8 Million More Nigerians to Fall Into Poverty Due to Inflation and Low Growth

By Milcah Tanimu

The World Bank has projected that rising inflation and low economic growth in Nigeria will result in an additional 2.8 million people falling into poverty by the end of 2023. The bank’s report, titled ‘Macro Poverty Outlook: Country-by-country Analysis and Projections for the Developing World,’ highlights the impact of high inflation, which reached a 17-year high of 24.1 percent in July 2023. Contributing factors include surging food prices and the temporary impact of removing the fuel subsidy. The report notes that the cumulative increase in the monetary policy rate since May 2022 has had limited success in curbing inflation due to clogged transmission channels and direct credit allocation by the central bank. The fiscal deficit has also risen, driven by increasing interest payments, higher capital spending, and the persistent high cost of the fuel subsidy. The World Bank predicts that public debt will reach 45 percent of GDP in 2023, with debt service exceeding total revenue. While the current account balance recorded a surplus in Q1 2023, it has not been sufficient to increase foreign reserves, posing challenges for economic stability. The report suggests that future economic growth in Nigeria will depend on the implementation of macro-fiscal and inclusive structural reforms. The World Bank expects inflation to moderate by 2024 and suggests targeted measures, such as cash transfers, to mitigate short-term adjustment costs for the poor and vulnerable.

Hot this week

Editors Urge Government To Create Safe, Enabling Environment For Journalists

· Ask security agents to find missing Vanguard journalistAs...

EXCLUSIVE: Buhari orders probe of Isa Funtua, AMCON over keystone and Etisalat

Following the controversy generated by the leading opposition party,...

6 Signs your boyfriend thinks you are ugly -Take note of No. 2

They say there are three kinds of people; the...

2023: South-East, Middle Belt Forum Endorses Peter Obi

The South-East and Middle Belt Forum has endorsed the...

Wike employs 34 Resident Doctors for FCT Hospitals

By Joyce Remi-BabayejuThe FCT Minister Barr Nysome Wike has...

Why Uzor Arukwe Is Nollywood’s Hottest Star Right Now – Segun Arinze

Veteran Nollywood actor Segun Arinze has hailed his colleague...

Man gets life jail for setting ex-boss ablaze in Ekiti

An Ekiti State High Court in Ado Ekiti has...

Travellers Stranded in Taraba as Bridge Collapse Cuts Off Major Highway

Travellers and motorists in Taraba State have been left...

President Federation Cup Round of 32 Fixtures Revealed

The highly anticipated President Federation Cup Round of 32...

Kaduna Police Officer Threatens Retaliation Against Southerners Over Uromi Killings

Kaduna State police officer, Hadaina Hussaini Dan-Taki, has sparked...

BREAKING: Edo Tribunal Dismisses Action Alliance’s Petition Against Okpebholo, APC

The Edo State Governorship Election Petition Tribunal in Abuja...

Sterling Bank Stops Online Transfer Charges

Sterling Bank has announced the elimination of transfer fees...
spot_img

Related Articles

Popular Categories

spot_imgspot_img