The World Bank says the high costs of borrowing, reduced energy prices in the international market, inflation and slow growth in oil production have weakened Nigeria’s fiscal position.
The latest data from the Global Economic Prospects report by the World Bank on Tuesday disclosed.
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.”