World Bank Cuts Nigeria’s Growth Forecast, Gives Reasons

Nigeria’s gross domestic product (GDP), will grow by only 1.9 percent rather than an estimated 2.1 percent in April, the World Bank said on Wednesday.

AN24 rpeorts that the Washington-based lender cut back on Nigeria’s growth forecast for 2018 on Wednesday, stating that it was as a result of the reduction in oil production levels in the continent’s biggest economy, and contraction in the agricultural sector, following the herder-farmer crisis.

The world apex bank said: “Average growth in the region rose from 2.3% in 2017 to 2.7% in 2018, barely above population growth, partly due to weaknesses in Nigeria, South Africa, and Angola—the region’s three largest economies,” the bank said.

“In Nigeria, declining oil production and contraction in the agriculture sector partially offset a rebound in the services sector and dampened non-oil growth, all of which affected economic recovery.”

“Nigeria’s recovery faltered in the first half of the year. Oil production fell, partly due to pipeline closures.

“The agriculture sector contracted, as conflict over land between farmers and herders disrupted crop production, partially offsetting a rebound in the services sector and dampening non-oil growth.”