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World Bank Lowers Nigeria’s Growth Projection To 3.1%
The World Bank has lowered Nigeria’s real GDP (Gross Domestic Product) growth rate from 3.2percent to 3.1percent for 2022, amid weakening economic performance in the last six months.
In its latest Nigeria Development Update (NDU), launched in Abuja, yesterday, the bank said that the nation had to make hard choices or face a worse economic downturn, in the months and years ahead.
“The World Bank now projects that real GDP will grow by 3.1percent in 2022 and 2.9percent in 2023–24, 0.3 of a percentage point lower than the previous projections at the time of the June 2022 NDU,” it said.
According to the organisation, “Nigeria’s economic performance has weakened since the previous was published in June 2022 under the title of ‘The Continuing Urgency of Business Unusual.’
“Despite favourable global oil prices, ‘business as usual’ economic management is not delivering desired outcomes and, even if a crisis is avoided in the near-term, long-standing policy and institutional challenges are persisting and severely constraining the economy.”
It observed that the global economic environment has weakened, with economic activities in most major countries having slowed in 2022 amid high inflation and central banks shifting toward contradictory monetary policies.
“The rate of consumer price inflation,” the bank noted, “has surged and is currently one of the highest globally. The consumer price index, already increasing at a high rate, accelerated in 2022 through October, to be up 21.1percent y-o-y, a 17-year high.”
The bank noted the irony of the Nigerian economy which has failed to benefit from the high oil prices, as has been the case with other oil producing nations of the world.
It said, “External and fiscal pressures have continued to grow, despite elevated global oil prices. Oil price booms have historically supported the Nigerian economy but this has not been the case in 2021–22. The average price of crude oil increased by over 150percent from 2020 to 2022, yet Nigeria’s macroeconomic performance has weakened over this time, and its fiscal space has shrunk.
“There are two reasons why Nigeria is not benefiting from high global oil prices: First, lower oil production: As a result of high production costs, theft and insecurity, joint-venture cash-call arrears, and inadequate investment, Nigeria’s crude oil output has been falling since 2020 and has consistently been below its Organisation of the Petroleum Exporting Countries (OPEC) quota since June 2020.
“Second, the ballooning cost of the petrol subsidy: The continuation of the petrol subsidy (deducted directly from oil revenues) implies forgone fiscal revenues of 2.5–2.7percent of GDP in 2022. This, combined with the protracted decline in oil production, has resulted in the lowest levels of net oil revenues (in percent of GDP) being transferred to the government in over a decade.”
The bank warned, therefore, “If Nigeria continues with ‘business-as-usual’ policies, the country will effectively be choosing a path that will lead to people’s prospects being hindered.”
On policy choices before the Nigerian government, the bank insisted on urgent steps to restore macroeconomic stability; increasing oil and non-oil revenues; reducing inflation through a sequenced and coordinated mix of trade, monetary and fiscal policies to restore conditions for private investment and growth; removing petrol subsidy; and adopting a single, market-responsive exchange rate.
In his remarks, World Bank Lead Economist for Nigeria and co-author of the Report, Alex Sienaert, said, “Previous episodes of reform progress and high growth, such as in the 2000s, show that Nigeria’s economy can turn around quickly, and its tremendous economic potential that could be unleashed is well-known.
If Nigeria chooses to make reforms that stabilise its macro-fiscal policy settings and support investment, this would be transformative for 80million poor Nigerians, for Nigeria as a whole, and for Africa.”
Spokesman to former Vice President Atiku Abubakar, and chieftain of the People’s Democratic Party (PDP), Mr Segun Sowunmi, has advised his principal, Atiku, to learn from President Bola Tinubu on how to form a coalition.
The Tide reports that in a bid to wrest power from President Tinubu in 2027, Atiku has been leading the movement by opposition politicians to form a coalition of political parties ahead of the next general election.
Last month, opposition politicians set up a team comprising former Minister of Transpiration, Rotimi Amaechi, and former Governor of Cross River State, Liyel Imoke, to decide whether to float a new party or fuse into an existing platform.
While the main opposition party, PDP, struggles with a perennial leadership crisis, the former Vice President is bent on establishing another political force to take power from the ruling party in 2027.
But Sowunmi, who has been Atiku’s ally for many years, disagrees with his move, saying instead of forming a coalition with another political platform, he should coalesce opposition politicians into the PDP.
Speaking during an interview on TVC on Tuesday, Sowunmi, who was Atiku’s campaign spokesperson in the last election, asked his principal to learn from President Tinubu on how to form a coalition.
Sowunmi believes Atiku, having benefitted from the PDP as a former Vice President and getting the party’s presidential ticket twice, should not seek to form a coalition that will not have the PDP as its base.
He said, “I’ve always said to people, people love with their hearts. I love atiku with my bones. But I can’t help him against himself. You can’t run vice presidency on PDP two times with Obasanjo, get presidential candidate on that same party two times. I don’t agree with him that the next best thing is to be shopping for…(a platform) If you want a coalition, why are you not coalescing them into your party?” he asked.
The former PDP governorship candidate in Ogun State advised the ex-VP to learn from Tinubu on how to build a coalition without dumping his political party.
“Look at your rival, your friend. You guys started together. At best, even if you want to say he’s building a coalition is he not coalescing opponents into his place”? Sowunmi asked again.
The PDP chieftain, who recently showered praises on Tinubu after he visited him, said the President has an “uncanny ability to make everybody individually feel special” regardless of political affiliations.
His words: “That guy (Tinubu) is something oh, he has this uncanny ability to make everybody individually feel special. It doesn’t matter whether you are a former foe or a president’s friend, every moment you share with him, I don’t know how he does it, though you’re going to leave the place feeling that you matter, feeling that he gets it, feeling that what you guys are talking about is important. And there’s something about him, when he gives you his word, he will say something like ‘ko le ye’, meaning that to the best of human ability, it will stand.”
Meanwhile, there have been conversations about Sowunmi’s political stance as many questioned his relationship with Atiku, with whom he shares a longstanding political relationship.
Asked about his relationship with Atiku following his meeting with Tinubu, Sowunmi said he doesn’t know if the former Vice President is upset.
“I don’t know whether Atiku is upset or not upset, but I know a lot of our followers are talking a lot of nonsense, and I’m wondering how I became attached to Atiku when I’ve been in PDP since 1999 never leaving,” he responded.
The Federal Inland Revenue Service (FIRS) has introduced a new Standard Operating Procedure (SOP) to fix inconsistencies in tax services across its over 300 offices nationwide.
The move aims to make tax processes clearer, more transparent, and easier for Nigerians.
In a statement, Special Adviser on Communications and Advocacy to the FIRS Executive Chairman, Mr. Collins Omokaro, said the updated SOP is a key part of the agency’s plan to improve taxpayer experience.
He explained that, in the past, different FIRS offices used different methods, which often confused taxpayers.
“This is about people, experience, and impact. It’s a step towards a tax system that supports voluntary compliance and national development,” Omokaro said.
The new SOP provides a single guide for key processes like registration, payment, audit, and enforcement. This will ensure all FIRS offices follow the same steps, making the system fairer and more predictable.
FIRS Executive Chairman, Dr. Zacch Adedeji, described the SOP as more than just a set of rules.
“This SOP is not just a technical document; it is a declaration of who we are becoming as a service. It reflects our commitment to transparency and service to the Nigerian people,” he said.
The SOP also supports FIRS’s digital transformation, combining human and technological systems to deliver faster and more reliable services. It will also improve internal efficiency by providing clear guidance and better training for staff.
“With this rollout, every FIRS staff member has a clear mandate: study it, apply it, and embody it. That’s how we’ll earn the trust of Nigerians,” Omokaro added.
The reform is part of FIRS’s efforts to become a more service-driven organisation, focused on clarity, consistency, and national growth. The agency hopes the new SOP will make tax services better for Nigerians and increase public trust in the system.
The Head of the Civil Service of the Federation (HCSF), Mrs Didi Walson-Jack, says the Federal Government is committed to building a world-class public service in Nigeria.
Walson-Jack made this known in Abuja, on Wednesday, at a World Press Conference ahead of the International Civil Service Conference and the African Public Service Week scheduled for June 25 to 26 in Abuja.
She said a recent study tour to Singapore was part of preparatory activities aimed at positioning Nigeria’s civil service for excellence and attracting global participation in the upcoming events.
“The study tour to Singapore was the first major activity we undertook under the collaboration between the Office of the Head of Civil Service of the Federation and the Heads of Service of the 36 states and the FCT,” she said.
According to her, the visit, supported by the United Nations Development Programme (UNDP), involved 20 State Heads of Service and was designed to benchmark best global practices and enhance Nigeria’s public service delivery.
“The idea was born out of our ongoing collaboration, where we share ideas and knowledge across federal and state levels.
“Singapore was chosen because it is globally recognised for excellence in public service,” she explained.
Walson-Jack noted that the second phase of the tour will involve the remaining 17 heads of service later this year.
She said the tour provided participants with the opportunity to engage with both public and private sector institutions in Singapore, compare administrative practices, and gain insights into global standards.
“It was an eye-opener and a capacity-building opportunity.
“Since our return, several state civil services have begun implementing reforms in collaboration with the federal service, particularly in areas such as capability development and digital transformation,” she added.
Walson-Jack further disclosed that Nigeria would host a reciprocal study tour during the upcoming African Public Service Week, where foreign delegates will engage with various federal institutions.
“They will see firsthand our digitalisation efforts, performance management systems, and other reform initiatives aimed at transforming our civil service.
“We hope the experience will inspire similar actions in their home countries,” she said.