The economy of Africa’s top oil producer is expected to expand 2.1% in 2020 and 2021, the bank said in its Nigeria Economic Update report published Monday. That’s below the nation’s 2.6% population growth rate.
The bank urged President Muhammadu Buhari to increase domestic revenue, remove trade restrictions and improve the predictability of economic policy. It also called on the government to remove expensive fuel subsidies and reduce central bank lending to targeted sectors that crowds out banks.
About half of Nigeria’s almost 200 million people live in poverty, according to the banks. Last year, Nigeria overtook India as the country with the largest number of people in extreme poverty.
Nigeria’s economy is still recovering from its first annual contraction in 25 years in 2016 that resulted from a collapse in crude prices. The country could slide back into recession if crude prices fall by 25% to $50 a barrel, the bank said.
Bloomberg
