In the next three years, an average Nigerian could see a reversal of decades of economic growth and the country could enter its deepest recession since the 1980s.
The latest World Bank Nigeria Development Update (NDU) argued that this path could be avoided if progress in the current reforms is sustained and the right mix of policy measures is implemented.
The report, “Rising to the Challenge: Nigeria’s COVID response,” released during a virtual media briefing on Wednesday, took stock of the recently implemented reforms and proposes policy options to mitigate the impact of COVID-19 and foster a resilient, sustainable, and inclusive recovery.
“Nigeria is at a critical historical juncture, with a choice to make”, said Shubham Chaudhuri, World Bank Country Director for Nigeria. “Nigeria can choose to break decisively from business-as-usual, and rise to its considerable potential by sustaining the bold reforms that have been taken thus far and going even further and with an even greater sense of urgency to promote faster and more inclusive economic growth.”
The latest World Bank NDU projected that the economy could shrink up to 4 percent in 2020 following the twin shocks of COVID-19 and low oil prices. The pace of recovery in 2021 and beyond remains highly uncertain and subject to the pace of reforms.