Dollar shortage, subsidy, deficit financing threatening Nigeria’s growth – W ’Bank
The World Bank has said that economic growth in Nigeria is being threatened by certain macroeconomic challenges, including dollar shortage, petrol subsidy and the fiscal deficit financing by the Central Bank of Nigeria. The bank disclosed this in its Nigeria Development report, which was released on Tuesday. The report identified measures taken by the government to tackle the pandemic-induced economic challenges. “In 2020, the Nigerian government began to address longstanding macroeconomic challenges by harmonising the two main exchange rates, adjusting electricity tariffs to more cost-reflective levels, cutting nonessential spending, redirecting budgetary resources towards the COVID-19 response at both the federal and state levels, strengthening debt management, and increasing the transparency of oil and gas operations,” it said. It noted that certain macroeconomic challenges had emerged that were undermining efforts made towards economic rebound. The World Bank said, “However, the reform momentum weakened in 2021, and in the absence of continued progress, key macroeconomic challenges have re-emerged as major threats to growth.