The World Bank has projected that Nigeria’s per capita income will return to its pre-pandemic level by 2025.
This outlook which also noted that the country’s economy is expected to witness a gradual improvement in the coming years, contains the bank’s Global Economic Prospects report for January 2024.
The Sub-Saharan African (SSA) region, including Nigeria, experienced a slowdown in economic growth to an estimated 2.9% in 2023, primarily due to country-specific challenges such as higher input prices for businesses in Nigeria.
The region’s three largest economies – Nigeria, South Africa, and Angola – saw their growth rate slow to an average of 1.8% in 2023.
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The Sub-Saharan Africa (SSA) region, where Nigeria is the largest economy, experienced a deceleration in growth to an estimated 2.9% in 2023, lower than the earlier projection.
Nigeria’s growth in 2023 softened to an estimated 2.9%, influenced by various factors including services growth weakening due to a disruptive currency demonetization policy.
Nigeria’s economy to grow by 3.3% in 2024
Looking forward, Nigeria’s economic growth is projected at 3.3% for 2024 and 3.7% for 2025. These projections are 0.3 and 0.6-% points higher than previous estimates made in June last year.
This improvement is expected due to the gradual impact of macro-fiscal reforms initiated by the government.
It noted that while the World Bank’s report is optimistic about Nigeria’s economic growth and per capita income returning to pre-pandemic levels by 2025, this recovery is contingent on the successful implementation and continuation of the current reform momentum.
