The World Bank has warned the
present administration that the number of Nigerians living in extreme poverty
may increase by more than 30 million by 2030.
The Bank warned that Nigeria will
be home to 25 per cent of the world’s destitute people if the government fails
to revive economic growth and create jobs.
It gave the warning in its 2019
Nigeria Economic Update Report, which was released on Monday.
The World Bank urged President
Muhammadu Buhari to increase domestic revenue, remove trade restrictions and
improve the predictability of economic policy.
It also advised the Nigerian
government to remove expensive fuel subsidies, adding that
failure to take actions would see
more Nigerians falling into extreme poverty
It stressed that Nigeria could
slide back into recession if crude prices fell by 25 per cent to $50 a barrel.
The report read: “Economic and
demographic projections highlight the urgent need for reform
“With population growth
(estimated at 2. 6 per cent) outpacing economic growth in a context of weak job
creation , per capita income is falling . Today , an estimated 100 million
Nigerians live on less than $1. 90 per day.
“Close to 80 per cent of poor
households are in northern Nigeria, while employment creation and income gains
have been concentrated on central and southern Nigeria.
“Nigeria’s economy is expected to
grow by 2. 1 per cent in 2020 and 2021, compared to an annual population growth
rate of 2. 6 per cent.
“Nigeria’ s economy is recovering
gradually from the 2016 recession, with growth projected to pick up from 1. 9
per cent in 2018 to two per cent in 2019
“But the projected growth outlook
is vulnerable to external and domestic risks , including geopolitical and trade
tensions that may affect inflows of private investment.
“Nigeria has the opportunity to
advance reforms to mitigate these risks amid growing public demand for greater
economic opportunities.
“President Muhammadu Buhari
should increase domestic revenue , remove trade restrictions and improve the
predictability of economic policy.
“Nigerian government should
remove expensive fuel subsidies and reduce lending to targeted sectors that
crowd out banks. Failure to take actions would see more Nigerians falling into
extreme poverty.
“The cost of inaction is
significant. Under a business -as- usual scenario, where Nigeria maintains the
current pace of growth and employment levels , by 2030, the number of Nigerians
living in extreme poverty could increase by more than 30 million,” the Bank
warned.
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