Nigeria’s Economy to Grow at 2.1% – AfDB

• Nigeria’s Economy to Grow at 2.1% – AfDB

The African Development Bank (AfDB) has predicted a positive outlook for Nigeria’s economic in 2018.

The bank in its 2018 African Economic Outlook projected that Nigeria’s economy would grow at 2.1 per cent in 2018 and 2.5 per cent in 2019.

According to AfDB, this outlook is anchored on higher oil prices and production, as well as stronger agricultural performance.

Notwithstanding this positive outlook for the country, the AfDB said Nigeria still faces significant challenges, including foreign exchange shortages, disruptions in fuel supply, power shortages, and insecurity in some parts of the country.

“In addition, revenue mobilization efforts are insufficient; at 5 per cent, value added tax rates are among the lowest in the world, and revenue administration is inefficient. Poverty is unacceptably high; nearly 80 per cent of Nigeria’s 190 million people live on less than $2 a day,” the bank said in its report.

Looking into the future, the AfDB economic prediction on Nigeria noted that “oil prices rebounded to an average of $52 per barrel (Brent crude) in 2017 and are projected to reach $54 in 2018, up from $43 per barrel in 2016.”

“Oil production also increased from 1.45 million barrels per day in the first quarter of 2017 to 2.03 million in the third quarter of 2017 following de-escalation of hostilities in the Niger Delta region and is expected to remain at the same level in 2018 and 2019, in tandem with the Organization of the Petroleum Exporting Countries (OPEC) production restrictions,” AfDB added.