Business
Ghana’s Economic Growth Weakened- IMF
The International Monetary
Fund (IMF) said that Ghana experienced weak economic growth in the first half of 2013.
Head of an IMF mission Christina Deseking, which was in Ghana between September 11 and September 17, said this in a statement issued at the end of the team’s exercise.
Deseking, who said the weakening was due to energy disruption and high real interest rates, stated that the team met with critical economic stakeholders in Ghana during the mission.
“Economic growth weakened in the first half of 2013 due to energy disruptions and high real interest rates
“Following the subsiding of the energy problems, we expect full-year growth of about seven per cent, compared to eight per cent in 2012,’’ she said.
She said that while Ghana’s medium term economic prospects remained strong, there were possible short term risks arising from sizeable fiscal and external imbalances
“Inflation has risen temporarily above 11 per cent as a result of the significant fuel price adjustments earlier in the year
“It is projected to increase to more than 13 per cent of GDP in response to much weaker gold and cocoa prices and ongoing fiscal pressures,’’ she said.
The IMF official said that the economy remained exposed to risks from a potentially deteriorating external environment and global financial market pressures.
“A preliminary assessment of fiscal performance during the first seven months of the year reveals significant challenges consistent with a slow-down in economic activity.
“Revenue has fallen short of expectations, and overruns in the wage bill, electricity subsidies, and high interest payments on public debt are creating fiscal pressures,’’ she said.
She described the government’s decision of a mid-year adoption of revenue measures and the re-introduction of the national stabilisation and import levies as right steps.
Deseking, however, stated that it would be difficult for the government to keep the deficit below 10 per cent of GDP.
“The mission agreed with the authorities on the need to reduce subsidies and tackle the problems in the energy sector as well as the re-instatement of the automatic fuel price adjustment mechanism.
“The restoration of electricity tariffs to cost-recovery levels will reduce fiscal risks and provide the needed space for higher social spending and critical infrastructure,’’ Deseking said.
She said that the mission also encouraged the government to strengthen its ongoing efforts to improve revenue collection as well as continue its public financial management reforms.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.