According to the World Bank, the bounce is due to rising oil prices as well as faster development in telecommunications and financial services.
The Nigerian economy is predicted to increase by 2.5 percent in 2022, up from 2.4 percent in 2021, according to the World Bank.
According to the bank’s January 2022 Global Economic Prospects report, which was released on Tuesday, Nigeria’s growth is expected to go up slightly to 2.5 percent in 2022 and 2.8 percent in 2023.
It attributed the rise in oil prices to the rebound, as well as faster growth in telecommunications and financial services.
“Higher oil prices, a gradual easing of Organization of the Petroleum Exporting Countries (OPEC) production cuts, and domestic regulatory reforms should benefit the oil sector,” it stated.
“Service sector activity is expected to pick up, particularly in telecommunications and financial services.”
However, it stated that the reversal of pandemic-induced income and employment losses is projected to be delayed and that this, together with high food prices, will slow the recovery of domestic demand.
“New threats from COVID-19 variants, as well as an increase in inflation, debt, and income inequality, could jeopardize the recovery in emerging and developing economies,” according to the research.
It explained that non-oil economic activity will be hampered by high levels of violence and social discontent in several sections of the nation, as well as the danger of further COVID-19 flare-ups.
The bank also forecast that per capita income in Angola, Nigeria, and South Africa will be lower in 2022 than it was a decade ago.
“The pandemic has reversed at least a decade of gains in per capita income in some countries, including Angola, Nigeria, and South Africa, where per capita incomes are forecast to be lower in 2022 than a decade ago.”
“After barely increasing last year, per capita incomes are expected to recover only slowly, rising 1.1 percent per year in 2022-23, leaving them nearly 2% below 2019 levels.”
“Per capita incomes in South Africa and Nigeria are projected to remain more than 3% below pre-pandemic levels in 2023,” according to the research.