Improved Economic Outlook and Prospects for Continued Growth in Nigeria

The World Bank in its recent report says Nigeria’s short-term economic outlook has improved in 2014 and prospects for continued growth and macroeconomic stability are good in light of increased revenues to the federation, stable foreign reserves and an augmented fiscal reserve fund, according to a new World Bank report. The Nigeria Economic Report (NER) also highlights two remaining risks to the country’s positive economic outlook; uncertainty in oil prices and output, and short-term capital flows.

The report offers a reassessment of poverty and living standards in Nigeria on the basis of newly available data (GHS), concluding that poverty rates may actually be significantly lower than previously estimated. However, there is a strong and growing divide between the Southern and Northern parts of the country in poverty levels.

Using newly-available data on growth, poverty, and living standards, the report gives a clearer picture of general development trends in the country, according to report author John Litwack, World Bank lead economist for Nigeria.

“The combination of the new GDP and poverty estimates is valuable in giving us what we believe to be a clearer picture of development and poverty reduction in Nigeria,” Litwack said. “Both sets of numbers indicate the prime importance of urban areas for growth and poverty reduction.”

Report: The World Bank 2014