AGS NEWS – According to a recent report by the African Development Bank (AfDB), Nigeria’s economic growth is anticipated to remain sluggish in 2024, unlike other West African nations.

The report indicates that while growth is projected to reach four percent in most West African countries, Nigeria and Ghana are exceptions.

For Nigeria, the continent’s largest economy, growth is forecasted to increase by only 0.4 percent in 2024 before slightly improving in subsequent years.

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Meanwhile, smaller West African nations such as Benin, Gambia, Guinea, and Togo have sustained robust growth. Mauritius and Mozambique, despite challenges posed by the Covid-19 pandemic, have also demonstrated strong economic momentum.

Ghana, although facing slower growth, is expected to outpace Nigeria, with its growth projected to rise from 1.5 percent in 2023 to 2.8 percent in 2024.

AGS NEWS reports that Nigeria’s sluggish growth is attributed to domestic economic reforms such as fuel subsidy removal and foreign exchange rate unification, which have led to increased inflation and currency depreciation.

The country’s unemployment rate has risen, and inflation has surged to its highest level in over 18 years.

The report suggests that Nigeria could benefit in the long term by reallocating funds previously used for fuel subsidies to critical social infrastructure.

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However, experts emphasize the importance of government accountability and local solutions to address the nation’s economic challenges effectively.

The AfDB recommends that countries experiencing high and persistent inflation, like Nigeria, implement tighter monetary policies until signs of inflation moderation are observed.