World Bank Says Inflation, Slow Growth, Others Weakening Nigeria's Fiscal Position

The World Bank has identified high costs of borrowing, reduced energy prices in the international market, inflation and slow growth in oil production as factors that have weakened Nigeria’s fiscal position.

The World Bank disclosed this in its latest data from the Global Economic Prospects report on Tuesday.

The US-based bank also said Nigeria’s growth dropped to 3.1 per cent in 2022 and will further reduce to 2.9 per cent this year.

“Policy inconsistency, continued high inflation, and rising incidence of violence are expected to temper growth.

"Agriculture sector growth is likely to soften because of the destruction from last year’s flooding.

“The fiscal position is expected to remain weak because of high borrowing costs, lower energy prices, a sluggish growth of oil production, and a subdued activity in the non-oil sectors.”

Fiscal policy is the use of government spending and taxation to influence the economy.

"Basically, governments use fiscal policy to promote strong and sustainable growth and reduce poverty."