Report

Nigeria Economic Update, Fall 2019 : Jumpstarting Inclusive Growth - Unlocking the Productive Potential of Nigeria’s People and Resource Endowments

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collection.link.85
https://openknowledge.worldbank.org/handle/10986/2193
collection.name.85
Economic Updates and Modeling
dc.contributor.author
World Bank Group
dc.date.accessioned
2019-12-05T22:14:20Z
dc.date.available
2019-12-05T22:14:20Z
dc.date.issued
2019-12-01
dc.date.lastModified
2021-05-25T09:30:18Z
dc.description.abstract
Nigeria continues its recovery from the 2016 recession, sustaining an estimated 2 percent growthrate in 2019. The collapse of global oil prices during 2014–16, combined with lower domestic oil production, led to a sudden slowdown in economic activity. Nigeria’s annual real GDP growth rate, which averaged 7 percent from 2000 to 2014, fell to 2.7 percent in 2015 and to -1.6 percent in 2016. Growth rebounded to 0.8 percent in 2017, 1.9 percent in 2018, and then plateaued at 2 percent in the first half of 2019, where it is expected to remain for the rest of the year. Services, particularly telecoms, remained the main driver of growth in 2019, although trade started contracting amidst increasing use of policy measures aimed at import substitution. Agricultural growth picked up slightly but remains affected by insurgency in the Northeast region and ongoing farmer-herder conflicts. Industrial performance was mixed: growth in the oil sector remained stable, but manufacturing production slowed in a context of weaker power sector supply. Overall, the slow pace of recovery in 2019 is attributable to weak consumer demand and lower public and private investment. The annual headline inflation rate fell from a peak of 15.7 percent in 2016 to a projected 11.6 percent in 2019 but remains high and above the central bank’s target of 6–9 percent. The focus section of this report analyzes the evolution of productivity in Nigeria and identifies policies and institutions that can leverage productivity growth to accelerate Nigeria’s economic expansion and create new job opportunities. The analysis highlights four key priorities. First, ensuring policy transparency and predictability will be critical to reduce investment risk and promote growth outside the extractive industry. Second, investing in infrastructure, strengthening land tenure security, improving educational outcomes, and liberalizing the trade regime and enhancing trade and transport facilitation would help develop value chains and facilitate the efficient reallocation of factors of production, making Nigeria more cost-competitive. Third, reducing regulatory discretion would help attract foreign and domestic investment to the nonoil sector, encourage competition, and promote formalization.And fourth, improving access to finance could enable new firms to compete with incumbents and allow more productive firms to scale up their operations. Actions in these areas would lay the groundwork for Nigeria’s transition to a new economic model that more effectively utilizes its large, young population and abundant natural resources to support sustainable growth and poverty reduction.
en
dc.identifier
http://documents.worldbank.org/curated/en/394091575477674137/Jumpstarting-Inclusive-Growth-Unlocking-the-Productive-Potential-of-Nigeria-s-People-and-Resource-Endowments
dc.identifier.uri
http://hdl.handle.net/10986/32795
dc.language
English
dc.publisher
Washington, DC: World Bank
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
MICROENTERPRISES
dc.subject
SMALL AND MEDIUM ENTERPRISES
dc.subject
ECONOMIC GROWTH
dc.subject
LABOR MARKET
dc.subject
EXPORT COMPETITIVENESS
dc.subject
MONETARY POLICY
dc.subject
FISCAL TRENDS
dc.subject
ECONOMIC OUTLOOK
dc.subject
RISKS
dc.subject
JOB CREATION
dc.subject
PRODUCTIVITY
dc.subject
TRANSFORMATION
dc.subject
REGULATION
dc.subject
ACCESS TO FINANCE
dc.subject
TRANSPARENCY
dc.title
Nigeria Economic Update, Fall 2019
en
dc.title.subtitle
Jumpstarting Inclusive Growth - Unlocking the Productive Potential of Nigeria’s People and Resource Endowments
en
dc.type
Report
en
okr.crossref.title
Nigeria Economic Update, Fall 2019
okr.date.disclosure
2019-12-04
okr.doctype
Economic & Sector Work
okr.doctype
Economic & Sector Work :: Economic Updates and Modeling
okr.docurl
http://documents.worldbank.org/curated/en/394091575477674137/Jumpstarting-Inclusive-Growth-Unlocking-the-Productive-Potential-of-Nigeria-s-People-and-Resource-Endowments
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/32795
okr.identifier.externaldocumentum
090224b0873abed3_1_0
okr.identifier.internaldocumentum
31610292
okr.identifier.report
144125
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/394091575477674137/pdf/Jumpstarting-Inclusive-Growth-Unlocking-the-Productive-Potential-of-Nigeria-s-People-and-Resource-Endowments.pdf
en
okr.region.administrative
Africa
okr.region.country
Nigeria
okr.topic
Macroeconomics and Economic Growth :: Economic Growth
okr.topic
Macroeconomics and Economic Growth :: Fiscal & Monetary Policy
okr.topic
Poverty Reduction :: Employment and Shared Growth
okr.topic
Private Sector Development :: Enterprise Development & Reform
okr.topic
Private Sector Development :: Microenterprises
okr.topic
Private Sector Development :: Small and Medium Size Enterprises
okr.topic
Social Protections and Labor :: Labor Markets
okr.unit
EFI-AFR2-MTI-MacroFiscal-2 (EA2M2)

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