Inflation Shocks Push 8 Million More Nigerians Into Poverty Under 2 Years

Nigeria has worst revenue-to-GDP ratio among 115 countries monitored by the World Bank

The World Bank has said that Nigeria has the worst revenue-to-GDP ratio among 115 countries it monitored. Economists use Gross Domestic Product (GDP) to measure the monetary value of final goods and services produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.

While making strong policy recommendations on Tuesday in its November 2021 Nigeria Development Update, the bank among other things observed that eight million Nigerians fell into poverty in less than two years as a result of inflation shocks.

The report also revealed that Nigeria no longer benefits from high oil prices, with record low revenues, and exorbitant fuel subsidies. It further said that Nigeria is the only country in the world granting universal price petrol subsidies. Proffering solutions to some challenges facing Nigeria’s economy going into the future, the World Bank has recommended a number of policy decisions for the Muhammadu Buhari administration and the Central Bank of Nigeria (CBN) starting from the year 2022.

READ ALSO: Bad Economy: World Bank Makes 7 Strong Policy Recommendations For Nigeria

The policy recommendations were contained in a 112-paged Nigeria Development Update
The World Bank advised that the government should take necessary and urgent steps to reverse its worsening economy and rising poverty levels.

Chimara Bygold

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