Publication:
Nigeria Biannual Economic Update, Fall 2018: Investing in Human Capital for Nigeria's Future

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dc.contributor.authorWorld Bank Group
dc.date.accessioned2018-12-18T20:13:22Z
dc.date.available2018-12-18T20:13:22Z
dc.date.issued2018-11-21
dc.description.abstractThe Nigerian economy remains dependent on the small oil sector (under 10 percent of GDP) for the bulk of its fiscal revenues and foreign exchange earnings. This makes Nigeria’s balance of payments and government budgets vulnerable to volatilities in oil prices. Indeed, growth and investment in Nigeria have been negatively impacted by repeated oil-price driven boom-bust cycles. The oil price shock of late 2014 and its aftermath pushed the economy into recession and precipitated a major budgetary crisis at the national and state levels which brought to light the longer-term trend of weak domestic revenue mobilization. Nigeria’s weak revenue mobilization has major implications for growth and development, including for improving its dire social service delivery outcomes. Thus, the country needs to take concrete steps to break its oil dependency to improve its economic and social outcomes. Oil revenues are recovering with increasing oil prices, but distributions to the tiers of government are constrained by the unbudgeted fuel subsidy and other deductions. The fuel subsidy, no longer an explicit first line deduction from oil revenues, mostly benefits the affluent and it is also widely-known that a portion of Nigeria’s imported petrol is smuggled out to neighboring countries where petrol is more expensive. The constrained net oil revenues, combined with non-oil revenues that are constrained by limited tax policy reforms and are thus stagnated (relative to GDP), limit overall revenue realization, thus constraining budget execution and the build-up of fiscal buffers. The growth in the public debt stock between the first half of 2017 and the first half of 2018 was mainly attributable to the increased Eurobond issuances, some of which were used to liquidate costlier domestic short-term debt. The Nigeria Economic Recovery and Growth Plan (ERGP) 2017-2020 aims to achieve macroeconomic stability and economic diversification and there is thus the need to accelerate its implementation progress. The special focus topic for this report is on human capital development in Nigeria. Studies show that between 10 and 30 percent of the differences in per capita income between countries can be attributed to human capital. The economic burden of malaria alone in Nigeria, accounting for direct and indirect costs excluding mortality, is estimated at 13.5 percent of GDP. However, in the quest for sustainable growth, Nigeria, like many other countries, has underinvested in human capital. While physical capital remains critical, it does not fully account for improvements in growth.en
dc.identifierhttp://documents.worldbank.org/curated/en/346771542864299850/Investing-in-Human-Capital-for-Nigerias-Future
dc.identifier.doi10.1596/31008
dc.identifier.urihttps://hdl.handle.net/10986/31008
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectMICROENTERPRISE
dc.subjectSMALL AND MEDIUM ENTERPRISES
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC OUTLOOK
dc.subjectOIL PRICES
dc.subjectMONETARY POLICY
dc.subjectFISCAL TRENDS
dc.subjectDEBT MANAGEMENT
dc.subjectCURRENT ACCOUNT
dc.subjectHUMAN CAPITAL
dc.subjectSERVICE DELIVERY
dc.titleNigeria Biannual Economic Update, Fall 2018en
dc.title.subtitleInvesting in Human Capital for Nigeria's Futureen
dc.typeReporten
dc.typeRapportfr
dc.typeInformees
dspace.entity.typePublication
okr.crossref.titleNigeria Biannual Economic Update, Fall 2018
okr.date.disclosure2018-11-22
okr.doctypeEconomic & Sector Work
okr.doctypeEconomic & Sector Work::Economic Updates and Modeling
okr.docurlhttp://documents.worldbank.org/curated/en/346771542864299850/Investing-in-Human-Capital-for-Nigerias-Future
okr.guid346771542864299850
okr.identifier.doi10.1596/31008
okr.identifier.externaldocumentum090224b086607bca_1_0
okr.identifier.internaldocumentum30632736
okr.identifier.report132316
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/346771542864299850/pdf/132316-21-11-2018-17-31-9-NigeriaBEUAMF.pdfen
okr.region.administrativeAfrica
okr.region.countryNigeria
okr.topicEducation::Access & Equity in Basic Education
okr.topicEducation::Education Finance
okr.topicEducation::Education Reform and Management
okr.topicEnergy::Oil & Gas
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.unitWest and Central Africa (GMTA1)
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