The World Bank has stated that monetary policy tightening by the Central Bank of Nigeria (CBN) may not rein in inflation and remains a risk to Nigeria’s growth outlook.
The international lender disclosed this in its latest Global Economic Prospects titled, “Growth Stabilizing But at a Weak Pace” on Wednesday.
The report predicting the outlook for the rest of 2024 and 2025 pegged Nigeria’s economic growth rate at 3.3 per cent in 2024 same as its projection at the beginning of the year.
Furthermore, the bank projected Nigeria’s GDP to grow at 3.5 per cent in 2025. It explained that growth will pick up from the 2.9 per cent recorded in 2023 due to the effect of the current administration’s reforms in the petroleum and forex exchange sector.
However, the report noted that the failure of monetary policy tightening by the CBN remains a risk to the outlook.
The Central Bank of Nigeria since this year has increased interest rates by a combined 750 basis points. The report stated, “Growth in Nigeria is projected to pick up to 3.3 per cent this year and 3.5 per cent in 2025.”
