Saturday, January 28, 2023
No Result
View All Result
SUBSCRIBE
eNaira Online News
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion
eNaira Online News
No Result
View All Result

World Bank says inflation to push additional 1 million Nigerians into poverty by end of 2022

by e-Naira Online News
June 14, 2022
in Finance
Reading Time: 3 mins read
A A
0
Home Finance
Share on FacebookShare on Twitter


World Bank has said that inflation in Nigeria, which it stated is already one of the highest in the world before the war in Ukraine, is likely to push an additional one million Nigerians into poverty by the end of 2022.

This was disclosed by the global financial institution in its latest Nigeria Development Update (NDU) report, titled, “The Continuing Urgency of Business Unusual”, which was released on Tuesday.

The report, which was shared with Nairametrics, stated that the additional 1 million is different from the 6 million Nigerians that were already predicted to fall into poverty this year because of the rise in prices, particularly food prices.

What World Bank is saying about Nigeria

It stated, “Nigeria is in a paradoxical situation: growth prospects have improved compared to six months ago but inflationary and fiscal pressures have increased considerably, leaving the economy much more vulnerable.

  • “Inflation in Nigeria, already one of the highest in the world before the war in Ukraine, is likely to increase further as a result of the rise in global fuel and food prices caused by the war. And that, the World Bank estimates, is likely to push an additional one million Nigerians into poverty by the end of 2022, on top of the 6 million Nigerians that were already predicted to fall into poverty this year because of the rise in prices, particularly food prices.
  • “This latest edition of the NDU highlights that the inflationary pressures will be compounded by the fiscal pressures Nigeria will face this year because of the ballooning cost of gasoline subsidies at a time when oil production continues to decline.
  • “Hence, Nigeria, for the first time since its return to democracy, and alone amongst major oil exporters, is unlikely to benefit fiscally from the windfall opportunity created by higher global oil prices.”
  • Shubham Chaudhuri, World Bank Country Director for Nigeria, said, “When we launched our previous Nigeria Development Update in November 2021, we estimated that Nigeria could stand to lose more than N3 trillion in revenues in 2022 because the proceeds from crude oil sales, instead of going to the federation account, would be used to cover the rising cost of gasoline subsidies that mostly benefit the rich. Sadly, that projection turned out to be optimistic.
  • “With oil prices going up significantly, and with it, the price of imported gasoline, we now estimate that the foregone revenues as a result of gasoline subsidies will be closer to N5 trillion in 2022. And that 5 trillion is urgently needed to cushion ordinary Nigerians from the crushing effect of double-digit increases in the cost of basic commodities, to invest in Nigeria’s children and youth, and in the infrastructure needed for private businesses small and large to flourish, grow and create jobs.”

According to the report, Nigeria’s growing macroeconomic challenges in 2022 highlights the continuing urgency of a departure from business as usual, and the need for consensus around a package of robust reforms.

How to reduce inflation

The Report highlights three policy priorities:

  • Reducing inflation through a sequenced and coordinated mix of exchange rate, trade, monetary, and fiscal policies including the adoption of a single, market-responsive exchange rate;
  • Addressing mounting fiscal pressures at the federal and sub-national levels by phasing out the petrol subsidy (estimated to cost up to 5 trillion naira in 2022) and redirecting fiscal resources to investments in infrastructure, education, and health services; increasing “pro-health taxes”, and improving tax compliance;
  • Catalyzing private investment to boost job creation by improving the transparency of key government-to-business services and eliminating trade restrictions.

Related



Source link

Tags: AdditionalBankinflationmillionNigerianspovertypushWorld
Previous Post

WhatsApp to Help Entrepreneurs With Available Business Growth Opportunities

Next Post

Abbey Mortgage Bank creating value with innovative financial solutions

Related Posts

Finance

Currency Swap Will Stabilise, Strengthen Economy—Buhari

by e-Naira Online News
January 28, 2023
Finance

Three die in fresh US shooting

by e-Naira Online News
January 28, 2023
Finance

Moody’s downgrades Nigeria’s currency and debts ratings to Caa1, cites Ways and Means

by e-Naira Online News
January 28, 2023
Finance

Guinness, MTN, Access Holdings, Others Crash Stock Market By 0.18%

by e-Naira Online News
January 28, 2023
Finance

Protesters barricade Osun roads, CP convoy blocked

by e-Naira Online News
January 28, 2023
Next Post

Abbey Mortgage Bank creating value with innovative financial solutions

Rebuilding profit on new strength in sales, cost reduction -

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest

Currency Swap Will Stabilise, Strengthen Economy—Buhari

January 28, 2023

Three die in fresh US shooting

January 28, 2023

Moody’s downgrades Nigeria’s currency and debts ratings to Caa1, cites Ways and Means

January 28, 2023

Why it’s a bad idea to bet against the Crypto market right now

January 28, 2023

The Importance Of Business Continuity Planning

January 28, 2023

Oduwacoin, Other Crypto That Cost Less Than $1

January 28, 2023

Debts upon debts! Supreme Court rules against Honeywell Flour, as firm struggles with N67.02bn loans

January 28, 2023

Sao Paolo Introduces Blockchain in Data Access Law – Regulation Bitcoin News

January 28, 2023

Get the free newsletter

eNaira Online News

Get the latest news and follow the coverage of eNaira, Business & Financial, Stock Market, Analysis, and more from the trusted sources.

CATEGORIES

  • Banking
  • Business
  • Capital Market
  • Companies
  • Crypto
  • eNaira
  • Finance
  • Opinion
  • Personal Finance
  • Real estate
  • Uncategorized
No Result
View All Result

GET THE FREE NEWSLETTER

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 e-Naira Online News.
e-Naira Online News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion

Copyright © 2022 e-Naira Online News.
e-Naira Online News is not responsible for the content of external sites.