Akinwumi-Adesina
Trending Story

Nigeria’s slow economy drags W/African countries down – AfDB

101

Although West Africa economy is forecast to improve in the near term, with regional growth projected to average about 3.6 percent in 2019 and 2020, driven by gradual recovery of commodity prices especially gold, cocoa, cashew nuts, iron ore and oil prices and most importantly, improved production, the region’s growth is being overshadowed by the continent’s biggest economy, Nigeria, the African Development bank said in a newly released report.

 

“Nigeria’s dominance in the region continues to overshadow other smaller economies and determine the economic performance of the region. This was evident during the 2pq6 economic recession and even last year’s much improved growth rate of 1.9 percent masks faster growth in some economies in the region such as Cote d’Ivoire (7.4%) and Senegal (7%),” the report said.

 

Nigeria, Africa’s largest economy is expected to pay 48 percent of total revenue in 2019 and 45 percent in 2020 in external debt service payments, while its estimated revenue excluding grants is put at seven percent.

 

According to the bank, Nigeria is expected to raise 3.0 percent in tax revenues, 3.6 percent in oil revenue and 0.4 percent in other revenue, bringing total revenue excluding grants to 7.0 percent lower than Burkina Faso’s total revenue of 26.1 percent and Guinea-Bissau’s 13.2 percent.

 

Nigeria’s inflation, according to the bank, is projected to rise to 12.2 percent in 2019 from 11.9 percent in 2018 and is expected to decline to 11.4 percent in 2020; while it’s real GDP is projected to grow by 2.3% in 2019 and 2.4% in 2020. Nigeria accounts for nearly 20% of continental GDP and about 75% of the West Africa economy.

 

The region’s tepid real GDP growth estimated at 3.3 percent, up from 2.7 percent in 2017 is reflected lower commodity prices, shrinking oil production in Nigeria by far the largest economy in the region, and the impact of Ebola virus outbreak. Growth contraction in Nigeria overwhelmed the high growth in some smaller economies, pulling down the region’s average, the bank said in the report, the 2019 West Africa Regional Economic Outlook.

 

The bank sees the West African economic growth as being threatened by risks from uncertainty in escalating global trade tensions including China-US trade war and Brexit normalization of interest rates in advanced economies and uncertainty in global commodity prices; as well as tighter global financial conditions, adverse weather conditions and political and regional security crisis.

 

“Amidst many global and regional risks, Africa has continued to show growth resilience and remains the second fastest region in the world, after East Asia. Nevertheless, there are also many and persistent challenges and pattern of growth has not been transformative enough.

 

“Shocks from reduce commodity prices and tighter global financial conditions, which are exacerbated by underlying domestic pressures arising from policy uncertainties, adverse weather conditions, political insecurity challenges have all continued to weigh down on the economies of Africa,” Ebirama Faal, Senior Director, Nigeria Country Department of the African Development Bank said at the launch of the bank’s two reports – the 2019 African Economic Outlook and the 2019 West Africa Regional Economic Outlook, in Abuja.

 

Growth in the West African region is projected to remain subdued at 3.6 percent in 2019 and 2020, while macroeconomic indicators including inflation fuelled in part by expansionary fiscal policy and supply-side constraints remain a challenge to investment and sustainable growth in West Africa.

Leave a comment

Related Articles

Billionaire philanthropist Tony Elumelu mulls buying NPFL team

As part of his corporate social responsibility, billionaire banker and philanthropist Tony...

Terry G speaks on Davido, Wizkid, and Burna Boy rivalries, faces backlash from fans

Nigerian music sensation Terry G, also known as the Apako master, has...

Dani Alves pays €1m bail, set to leave Spanish jail

Former Brazil and Barcelona star Dani Alves, convicted of rape in Spain,...

World TB Day: 70 percent of TB cases in Africa now being diagnosed and treated – WHO

The World Health Organization (WHO) has disclosed that about 70 percent of...

13th AAG: Tobi Amusan wins gold in women’s 100m hurdles

The Nigerian sprint star, Tobi Amusan, won gold in the women’s 100m...

FG approves N12.7bln for mass metering of army barracks nationwide

The Federal Government says it has released N12.7 billion to provide electricity...

Women’s Day: Tinubu felicitates women, vows to prioritise their welfare, rights

President Bola Tinubu has promised to prioritize the welfare of women, protect...

All African Games: Nigeria’s Flying Eagles start their campaign on a losing note

The Flying Eagles of Nigeria started their campaign in the men’s football...

EFCC sets up task force to combat dollarization of economy, mutilation of naira

The Economic and Financial Crimes Commission (EFCC) has announced the setting up...

How Bafarawa diverted N4.6bln from ex-NSA for prayers, election, acquire luxury vehicles

A startling revelation has been made about how a former governor of...

CBN redeploys 1,500 staff to Lagos

The Central Bank of Nigeria (CBN) says it has redeployed 1,500 staff...

AFCON: Pres. Tinubu says unimpressed with Super Eagles’ performance

President Bola Tinubu has expressed his displeasure over the performance of the...

I’ve not met a man kind enough to marry —Ini Edo

In a candid revelation, renowned actress, Ini Edo, has hinted about the...

Ogun CP visits shot Nollywood actor, Ijaduade, vows to punish trigger-happy cop

Nollywood actor and Director, Azeez Ijaduade, who was shot “accidentally” by a...

Breaking: Actor, Azeez Ijaduade, allegedly shot by policeman in Ogun

In a shocking incident that has sent shock waves to Yoruba section...

Fast and furious actor, Vin Diesel, accused of sexual assault

Vin Diesel, known for his role in the Fast & Furious Series,...

Anyone asking for money this festive season lacks conscience, fear God – Comedian AY

Amid Nigeria’s challenging economic downturn, renowned comedian, Ayo Makun, popularly known as...

Octogenarian actor, Dejumo Lewis, dies

Nollywood community was on Friday night thrown into grief as the news...

I’m lucky to have you as my wife, Lateef praises Mo Bimpe on 2nd wedding anniversary

Celebrating their second year wedding anniversary, Nollywood actor, Lateef Adedimeji, has expressed...

Frank Edoho faces backlash for controversial remarks on infidelity

Renowned media personality, Frank Edoho, is under fire after making contentious comments...