• Latest
  • Trending
  • All
  • Politics
  • Economy
  • Security
  • Education
  • Sports
  • Health
  • Entertainment
  • Legal
  • Technology and Science
  • Opinion
  • Columns
  • Exposé
  • World
  • Lifestyle
World Bank Downgrades Sub-Saharan Africa's 2024 Growth

World Bank Alerts Nigeria Of Fast Rising Inflation, Costly Debt Profile

3 years ago
Senegal Moves To Reduce Reliance On Foreign Lenders, Targets Improved IGR

Senegal Promises To Clear Undeclared Debt Incurred By Past Administration

10 hours ago
More Top Seeds Crash Out Of Wimbledon

More Top Seeds Crash Out Of Wimbledon

11 hours ago
2024 WAFCON: CAF Unveils ‘Born Winners’ Slogan, Teams Settle Down For Kick-off

2024 WAFCON: CAF Unveils ‘Born Winners’ Slogan, Teams Settle Down For Kick-off

12 hours ago
Nigerian Govt Set To Launch ‘Africans For Africa’ Mining Sector Fund

Nigerian Govt Set To Launch ‘Africans For Africa’ Mining Sector Fund

14 hours ago
ECOWAS Declares All-Out Fight Against ‘Kush’ As Drug Use Surges

ECOWAS Declares All-Out Fight Against ‘Kush’ As Drug Use Surges

14 hours ago
Thursday, July 3, 2025
  • About
  • Privacy Policy
Heritage Times
No Result
View All Result
Translate |
  • Login
  • Politics
    Ivory Coast: AU Court Rejects Gbagbo’s Bid To Seek Re-Election

    Ivory Coast: AU Court Rejects Gbagbo’s Bid To Seek Re-Election

    SA: Crack Widens In Unity Govt As DA Withdraws From National Dialogue

    SA: Crack Widens In Unity Govt As DA Withdraws From National Dialogue

    Cameroon: Influential Minister Resigns, To Challenge President Biya At Polls

    Cameroon: Influential Minister Resigns, To Challenge President Biya At Polls

    U.S.-Africa Business Summit: Washington Denies “Abusive” Tariff Against Africa

    U.S.-Africa Business Summit: Washington Denies “Abusive” Tariff Against Africa

    Uganda: After 39 Years In Office, 80-Year-Old Museveni Seeks Re-Election

    IWD 2023: Women In Media Harp On Importance Of Digital Skills For Female Journalists

    Nigeria: Momentum Builds As Women Journalists Push For Passage Of Special Seat Bill

    Mali’s Military Leader, Goita Meets Putin After Ditching ECOWAS

    Mali’s Military Leader, Goita Meets Putin After Ditching ECOWAS

    WAES2025: Liberian Leader Wants ECOWAS’ Door Open To Junta-led Niger, Mali, Burkina Faso

    WAES2025: Liberian Leader Wants ECOWAS’ Door Open To Junta-led Niger, Mali, Burkina Faso

    Tunisian Court Slams 15-Year Jail Term On Another Opposition Figure

    Tunisian Court Slams 15-Year Jail Term On Another Opposition Figure

  • Economy
    Senegal Moves To Reduce Reliance On Foreign Lenders, Targets Improved IGR

    Senegal Promises To Clear Undeclared Debt Incurred By Past Administration

    Nigerian Govt Set To Launch ‘Africans For Africa’ Mining Sector Fund

    Nigerian Govt Set To Launch ‘Africans For Africa’ Mining Sector Fund

    Kenya Mulls Privatisation Of Key Government Assets To Attract Investment

    Kenya Mulls Privatisation Of Key Government Assets To Attract Investment

    Nigeria: Govt Says Deliberate Policies Boosting Investors’ Confidence In Oil & Gas Sector

    Nigeria: Govt Says Deliberate Policies Boosting Investors’ Confidence In Oil & Gas Sector

    US-Africa Summit Wraps Up with Trade and Investment Deals Worth Over $2.5 Billion

    US-Africa Summit Wraps Up With Trade And Investment Deals Worth Over $2.5 Billion

    S/Africa Introduces $54 Million Incentive To Boost Local Manufacturing Of EVs

    South Africa Secures $474.6 Million Loan From AfDB To Boost Energy Transition

    Celebration Of Excellence: Nigerian Govt Rewards Outstanding Civil Servants With Brand New Cars, House

    Celebration Of Excellence: Nigerian Govt Rewards Outstanding Civil Servants With Brand New Cars, House

    Namibia Sends First AfCFTA Shipment To Nigeria

    Namibia Sends First AfCFTA Shipment To Nigeria

    Afreximbank Shareholders Name Cameroonian George Elombi As New President

    Afreximbank Shareholders Name Cameroonian George Elombi As New President

  • Security
  • Education
  • Sports
  • Health
  • Metro
  • Entertainment
  • Lifestyle
  • Legal
  • Tech & Science
  • Opinion
  • Exposé
  • Exclusive Videos
  • Niger Delta
  • World
  • Politics
    Ivory Coast: AU Court Rejects Gbagbo’s Bid To Seek Re-Election

    Ivory Coast: AU Court Rejects Gbagbo’s Bid To Seek Re-Election

    SA: Crack Widens In Unity Govt As DA Withdraws From National Dialogue

    SA: Crack Widens In Unity Govt As DA Withdraws From National Dialogue

    Cameroon: Influential Minister Resigns, To Challenge President Biya At Polls

    Cameroon: Influential Minister Resigns, To Challenge President Biya At Polls

    U.S.-Africa Business Summit: Washington Denies “Abusive” Tariff Against Africa

    U.S.-Africa Business Summit: Washington Denies “Abusive” Tariff Against Africa

    Uganda: After 39 Years In Office, 80-Year-Old Museveni Seeks Re-Election

    IWD 2023: Women In Media Harp On Importance Of Digital Skills For Female Journalists

    Nigeria: Momentum Builds As Women Journalists Push For Passage Of Special Seat Bill

    Mali’s Military Leader, Goita Meets Putin After Ditching ECOWAS

    Mali’s Military Leader, Goita Meets Putin After Ditching ECOWAS

    WAES2025: Liberian Leader Wants ECOWAS’ Door Open To Junta-led Niger, Mali, Burkina Faso

    WAES2025: Liberian Leader Wants ECOWAS’ Door Open To Junta-led Niger, Mali, Burkina Faso

    Tunisian Court Slams 15-Year Jail Term On Another Opposition Figure

    Tunisian Court Slams 15-Year Jail Term On Another Opposition Figure

  • Economy
    Senegal Moves To Reduce Reliance On Foreign Lenders, Targets Improved IGR

    Senegal Promises To Clear Undeclared Debt Incurred By Past Administration

    Nigerian Govt Set To Launch ‘Africans For Africa’ Mining Sector Fund

    Nigerian Govt Set To Launch ‘Africans For Africa’ Mining Sector Fund

    Kenya Mulls Privatisation Of Key Government Assets To Attract Investment

    Kenya Mulls Privatisation Of Key Government Assets To Attract Investment

    Nigeria: Govt Says Deliberate Policies Boosting Investors’ Confidence In Oil & Gas Sector

    Nigeria: Govt Says Deliberate Policies Boosting Investors’ Confidence In Oil & Gas Sector

    US-Africa Summit Wraps Up with Trade and Investment Deals Worth Over $2.5 Billion

    US-Africa Summit Wraps Up With Trade And Investment Deals Worth Over $2.5 Billion

    S/Africa Introduces $54 Million Incentive To Boost Local Manufacturing Of EVs

    South Africa Secures $474.6 Million Loan From AfDB To Boost Energy Transition

    Celebration Of Excellence: Nigerian Govt Rewards Outstanding Civil Servants With Brand New Cars, House

    Celebration Of Excellence: Nigerian Govt Rewards Outstanding Civil Servants With Brand New Cars, House

    Namibia Sends First AfCFTA Shipment To Nigeria

    Namibia Sends First AfCFTA Shipment To Nigeria

    Afreximbank Shareholders Name Cameroonian George Elombi As New President

    Afreximbank Shareholders Name Cameroonian George Elombi As New President

  • Security
  • Education
  • Sports
  • Health
  • Metro
  • Entertainment
  • Lifestyle
  • Legal
  • Tech & Science
  • Opinion
  • Exposé
  • Exclusive Videos
  • Niger Delta
  • World
No Result
View All Result
First with the News

World Bank Alerts Nigeria Of Fast Rising Inflation, Costly Debt Profile

•Identifies causes, effects and remediation.

January 4, 2022
in Economy, Top Stories
0
World Bank Downgrades Sub-Saharan Africa's 2024 Growth
0
VIEWS
Share on FacebookShare on TwitterShare on Whatsapp

By John Ikani 

The World Bank has said Nigeria may have one of the highest inflation rates globally in 2022, with increasing prices diminishing the welfare of Nigerian households.

Relatedreading

Senegal Promises To Clear Undeclared Debt Incurred By Past Administration

More Top Seeds Crash Out Of Wimbledon

It has also warned that Nigeria’s debt, which may be considered sustainable for now, is vulnerable and costly.

The bank said these in the November edition of its Nigeria Development Update.

On inflation, the Washington-based global financial institution said Nigeria is projected to have one of the highest inflation rates globally and the seventh highest among Sub-Saharan African countries in 2022.

According to the global financial institution, high inflation hampers the country’s attempt to achieve economic recovery and erodes the purchasing power of most vulnerable households.

The bank further highlighted the adverse effects of inflation on Nigeria, which include pushing eight million Nigerians into poverty, and the possible disruption of consumption, investment and saving decisions, among other consequences.

It also said that inflationary pressures were trigged by multiple demand and supply shocks.

The document read in part, “Inflationary pressures are being generated by multiple demand and supply shocks. Supply shocks arising from disruption of supply chains linked to COVID-19 and associated containment measures have eased, but security issues, border closures, and limited access to markets continue to fuel inflation.

“The current mix of monetary, fiscal, foreign exchange, and trade policies also plays a prominent role as a driver of inflation. Trade and FX restrictions, including the closure of land borders starting in August 2019, have increased prices for food and consumer goods, and imports of over 40 goods, including many staple foods, are currently ineligible for FX through formal windows.

“Nigeria’s exchange-rate management has resulted in the rise of parallel rates, which are closely linked to food-price dynamics. Unable to access FX through the official exchange-rate window, businesses seek FX on the parallel market and other alternative sources.

“The parallel rate influences their business decisions, and fluctuations in the parallel rate pass through to market prices for goods and services. Moreover, monetary policy has not prioritized controlling inflation, and the monetary financing of fiscal deficit undermines the effectiveness of policies to contain demand-side inflationary pressures.”

On Nigeria’s rising debt profile, the World Bank said “Nigeria’s debt remains sustainable, albeit vulnerable and costly, especially due to large and growing financing from the Central Bank of Nigeria.

“While currently the debt stock of 27 per cent of the Gross Domestic Product is considered sustainable, any macro-fiscal shock can push debt to unsustainable levels.

“However, the debt to the GDP in Nigeria is rising quickly, and the total stock of debt in absolute value has almost doubled between 2016 and 2020, and without a policy change is expected to reach 40 per cent of the GDP by 2025.”

The bank further expressed concerns over the nation’s cost of debt servicing, which according to it, disrupts public investments and critical service delivery spending.

“The cost of debt servicing is also a concern as it is potentially crowding out public investment and critical service delivery spending. Interest costs have been above two per cent of the GDP since 2018, reaching 2.4 per cent of the GDP in 2019 and then falling to 2.2 per cent of the GDP in 2020.

“Cost of debt is high as Federal Government also resorts to overdraft (Ways and Means financing) from the CBN to meet in-year cash shortfalls. At end of 2020, the stock of the CBN Ways and Means financing was estimated at N13.1tn or 8.5 per cent of the GDP,” it stated.

It, however, said that the Federal Government was making efforts to negotiate terms with the CBN in order to convert the stock of overdraft financing into a long-term debt instrument, which would lower the cost of debt for the government and enhance fiscal sustainability over the medium long term.

Tags: Central Bank of Nigeria (CBN)World Bank
ShareTweetSend
Previous Post

Kenya: Six Killed In Suspected Al-Shabaab Attack

Next Post

Haiti’s Prime Minister Survives Assassination Attempt

Related Posts

Senegal Moves To Reduce Reliance On Foreign Lenders, Targets Improved IGR

Senegal Promises To Clear Undeclared Debt Incurred By Past Administration

July 2, 2025
More Top Seeds Crash Out Of Wimbledon

More Top Seeds Crash Out Of Wimbledon

July 2, 2025

2024 WAFCON: CAF Unveils ‘Born Winners’ Slogan, Teams Settle Down For Kick-off

Nigerian Govt Set To Launch ‘Africans For Africa’ Mining Sector Fund

ECOWAS Declares All-Out Fight Against ‘Kush’ As Drug Use Surges

Kenya Mulls Privatisation Of Key Government Assets To Attract Investment

Next Post
Haiti's Prime Minister Survives Assassination Attempt

Haiti's Prime Minister Survives Assassination Attempt

Please login to join discussion
AfriHeritage Magazine Issue 2 AfriHeritage Magazine Issue 2 AfriHeritage Magazine Issue 2

Updates

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Senegal Moves To Reduce Reliance On Foreign Lenders, Targets Improved IGR

Senegal Promises To Clear Undeclared Debt Incurred By Past Administration

July 2, 2025
More Top Seeds Crash Out Of Wimbledon

More Top Seeds Crash Out Of Wimbledon

July 2, 2025
2024 WAFCON: CAF Unveils ‘Born Winners’ Slogan, Teams Settle Down For Kick-off

2024 WAFCON: CAF Unveils ‘Born Winners’ Slogan, Teams Settle Down For Kick-off

July 2, 2025
Nigerian Govt Set To Launch ‘Africans For Africa’ Mining Sector Fund

Nigerian Govt Set To Launch ‘Africans For Africa’ Mining Sector Fund

July 2, 2025
JESIN GAMES - AfriTrivia JESIN GAMES - AfriTrivia JESIN GAMES - AfriTrivia
ADVERTISEMENT

Most Recent

Senegal Promises To Clear Undeclared Debt Incurred By Past Administration

July 2, 2025

More Top Seeds Crash Out Of Wimbledon

July 2, 2025

2024 WAFCON: CAF Unveils ‘Born Winners’ Slogan, Teams Settle Down For Kick-off

July 2, 2025

Nigerian Govt Set To Launch ‘Africans For Africa’ Mining Sector Fund

July 2, 2025

ECOWAS Declares All-Out Fight Against ‘Kush’ As Drug Use Surges

July 2, 2025

Kenya Mulls Privatisation Of Key Government Assets To Attract Investment

July 2, 2025

Ugandan Military Helicopter Crashes At Somalia Airport, Kills 3

July 2, 2025

2025 World Athletics Championships: Nigeria Walk Tight Rope In Relay

July 2, 2025

About

Heritage Times HT stands as a beacon of pan-African journalism, dedicated to amplyfing the rich tapestry of voices and narratives across the continent. With unwavering commitment, we illuminate the evocative essence of Africa, offering a fresh perspective that captivates our global audience.

Featured

From Hope To Fear: Kenya Joins East Africa’s Crackdown On Free Expression

AfDB Set For A New President, As Ould Tah Gains Continental Endorsement

How Dangote Is Turning Trump’s Trade War Into Africa’s Opportunity

Connect

Connect with us on social media and receive timely updates on the go.

Get Updates

  • About
  • Privacy Policy

© 2024 Heritage Times (HT) Media.

No Result
View All Result
  • Welcome
  • Politics
  • Economy
  • Security
  • Exposé
  • Education
  • Sports
  • Health
  • Entertainment
  • Legal
  • Technology and Science
  • Columns
    • Opinion
  • World
  • __________________
  • Make a Donation
  • Photo Speaks
  • Videos
  • You-Report
  • Whistleblower
  • Advertise
  • HT Events
  • About HT
  • Contact us

© 2024 Heritage Times (HT) Media.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In