Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 16)

The International Monetary fund (IMF), in its April 2022 Economic Outlook, has revised its growth projection upward for the Nigerian economy in 2022 to 3.4 percent.1 The IMF had earlier forecasted a 2.7 percent growth for the Nigerian economy in 2022, suggesting an increase of 0.7 percent point. Also, the forecast for 2023 was revised upward from 2.8 percent, indicating an increase of 0.4 percent point. Despite the upward revision, Nigeria’s growth forecast still lags behind the Sub-Saharan growth rate of 3.8 percent and the world growth rate of 3.6 percent. The forecast for Sub-Saharan Africa was revised upward by 0.1 percent point, and the world was revised downward by 0.8 percent point. The Fund expected that the sanctions imposed on Russia would disrupt the global value chain, resulting in a slow global economic growth rate. The upward revision for Nigeria was premised on the surge in crude oil prices, putting Nigeria in a beneficial spot for the Russian invasion of Ukraine. In other words, the forecast suggests that the Fund anticipates that Nigeria would optimise the oil revenue gains associated with the invasion. There is a need for the Nigerian government to match the positive image of the Fund by reforming the Nigerian oil and gas sector to address legacy issues that have adversely affected investment in the sector and resulted in low production levels.

Download Label
March 13, 2018 - 4:00 am
467.22 kB
v.1.7 (stable)