World Bank reveals solution to economic growth in Nigeria, other West African countries

The World Bank has told Nigeria and other West African countries to imbibe a more stable macroeconomic environment and accommodative monetary policies as a solution to spur economic growth in the region.

The Washington-based bank disclosed this in its recent economic outlook on Western and Central Africa.

The report said that improved offshore Baleine Oilfield, rising oil production and exports are expected to boost economic activity in the region.

According to the World Bank, Nigeria’s lower-than-average growth will hold back the sub-region’s economic performance.

The World Bank explained that the growth in Nigeria was projected at 3.3 per cent in 2024 and 3.6 per cent in 2025–2026 as macroeconomic and fiscal reforms gradually start to yield results.

“In AFW, economic activity is set to increase from 3.2 per cent in 2023 to 3.7 per cent in 2024 and further accelerate to 4.2 per cent in 2025–2026.

“The subregion’s performance will be held back by the lower-than-average growth in Nigeria.

“Excluding this country, the AFW sub-region is projected to grow by 4.4 per cent in 2024 and 5 per cent in 2025–2026.

“A more stable macroeconomic environment, as the reforms’ initial shock dissipates, will lead to sustained but still slow growth of the non-oil economy.

“The oil sector is expected to stabilise with a recovery in production and slightly lower prices.

“A more accommodative monetary policy by the Central Bank of West African States would support private consumption.

“In line with the development of the offshore Baleine Oilfield, rising oil production and exports are expected to boost economic activity.

“Finally, investments in agriculture, manufacturing, and telecommunications are expected to increase due to reforms in the business environment,” the report stated.