Surging inflation is undermining the recovery of Africa’s biggest economy; pushing 7 million Nigerians into poverty and encouraging criminality as rising prices deplete already meager incomes, according to the World Bank.
World Bank in its six-monthly Nigeria Development Update report says increased insecurity across the nation is a drag on growth and job creation.
The organisation gave a GDP growth forecast for Africa’s most populous country of 1.9% in 2021 and 2.1% in 2022.
The World Bank sees inflation at an average of 16.5% this year and remaining above the 9% top of the target band until at least 2023.
The central bank should aim for greater flexibility by re-establishing a dollar interbank market, effectively allowing banks to trade currency on their own behalf to increase liquidity and move toward a single rate, the bank said.
COVID-induced crisis is expected to push over 11 million Nigerians into poverty by 2022 taking the total number of people classified as poor in the country to over 100 million of the total population estimated at 200 million.