World Bank identifies 3 key solutions for sustainable economic growth in Nigeria

The World Bank has identified 3 ways in
which the 36 states of the federation and
Abuja can survive economic challenges
- They are: ensuring sustained reforms to
increase IGR’s, improving spending
efficiency, and strengthening debt
management and fiscal transparency
- Despite contracting for five consecutive
quarters since early 2016, however,
Nigeria’s growth projections are expected
to reach one per cent during the year
Three ways whereby the 36 states of the
federation and Abuja can survive economic
challenges, have been identified by the
World Bank, Premium Times reports.
The global bank made its observations and
assessment public in its new Nigeria Bi-
Annual Economic Update which was
released on Wednesday, November 22, in
Abuja.the bank identified the
3 solutions as ensuring sustained reforms
to increase internally-generated revenues,
improving spending efficiency, and
strengthening debt management and fiscal
transparency.
World Bank President, Jim Yong Kim (Photo
credit: NY Times)
According to the World Bank, implementing
these 3 strategies would ensure sustainable
growth of the nations’ economy.
The report stated: “At present, states
remain under considerable fiscal stress,
with states requesting continuation of the
Budget Support Facility beyond the original
end date of May 2017.
“This level of fiscal deficits would lead to an
increase in total state debt stock to 5.4 per
cent of GDP and 200 per cent of revenue by
2020.
“In light of the continuing fiscal pressures,
there is a strong need to strengthen the
performance of the states through the full
and sustained implementation of reforms
to increase internally-generated revenue
and state spending efficiency, and
strengthen state debt management and
fiscal transparency.”
Nigeria’s economy recorded a 0.6 per cent
positive growth (year-on-year) in the
second quarter of 2017, after contracting
for five consecutive quarters since early
2016.
However, amidst sustained oil production
recovery, growth projections are expected
to reach one per cent during the year previously reported
that the global economic report by the
World Bank predicted that Nigeria would
get out of recession, and grow its gross
domestic product (GDP) by one percent in
2017.
In the report, the bank further stated that
the global economy will accelerate
moderately to 2.7 percent in 2017