The World Bank has cut Nigeria’s economic growth forecast for this year, citing weakness from oil-output disruptions and low prices.

The bank, in its semi-annual Global Economic Prospects report, expects Nigeria to grow by 0.8 per cent, down from an estimate of 4.6 per cent in January. Growth could pick up to 3.5 per cent in 2017, it said.

Foreign exchange restrictions, fuel shortages and a plunge in oil production and prices had hit the economy, the World Bank was quoted by Reuters to have stated in the report.

The country’s economy contracted for the first time since 2004 in the first quarter of this year and the Governor, Central Bank of Nigeria, Mr. Godwin Emefiele, warned in May that a recession was imminent after a four-month delay in the nation’s budget stalled economic stimulus programmes.

Faced with the oil price slump, the key source of government revenue, the central bank has restricted access to foreign exchange. The country has held its currency, the naira, at 197-199 per dollar since March 2015, unlike some other oil producers that have let their currencies weaken.

The CBN’s Monetary Policy Committee had two weeks ago, after its meeting, announced plans to adopt a flexible exchange rate. But the blueprint for the proposed policy has yet to be released, putting further pressure on the naira at the parallel market.

The country is currently plagued by oil supply woes, as a resurgence of attacks by militants on oil and gas facilities in the Niger Delta has driven crude output to its lowest level in nearly three decades.

The Africa and Middle East Economist, Bloomberg, Mark Bohlund, in a new report, said the Nigerian economy was at risk of experiencing its first full-year recession since 1987, after output contracted by 0.4 per cent in the first quarter from a year earlier.

He said a drop in oil output to a 27-year low and paralysis in other sectors due to fuel and foreign exchange shortages meant that economic growth was likely to remain negative for the rest of this year.

The naira devaluation is unlikely to help much, with its beneficial impact expected beyond the end of this year, he said.

Bohlund said, “The first quarter contraction does not come as a surprise, but the drop in oil production was actually less damaging to activity than anticipated, dragging on real Gross Domestic Product growth by only 0.2 percentage point in the period compared with 0.7 percentage point in the fourth quarter and 0.6 percentage point in 2015.

“Instead, it was manufacturing that experienced the sharpest drop in activity, falling by seven per cent year over year. This is likely to have been partly connected to a decline in domestic demand but also to the difficulties of importing input materials due to foreign exchange controls.”

http://www.financialwatchngr.com/2016/06/09/world-bank-lowersnigerias-growth-forecast/

Of course it was expected, but nevertheless we will rise again.

Gullibos, good is ready.

Same itouts praising ND Scavengers will soon come here to wail and blame 1) Buhari 2) Yorubas.

Prediction are not always truth. Oh Allah prove them wrong.

Buhari has finished us in this country

I miss GEJ. Zombies don't quote me please.

YorubaHighness:
Gullibos, good is ready.

Same itouts praising ND Scavengers will soon come here to wail and blame 1) Buhari 2) Yorubas.

surely

I dare say no country that has built a solid economy based on local production has ever listened to the world Bank or the IMF. Before the advent of mobile phones, I sat in a meeting with an Investec SA analyst ( one of the funders of MTN) and heard them express concern over the size of the Nigerian market based on a then World Bank issued GDP of $500. I told them that the size of the informal economy was much larger than the formal economy.

Today, the results in the Nigerian mobile market are clear.

Good or bad news, ignore the world Bank, their theories require you to be part of a global market that squeezes local production. We are still recovering from SAP.

Ignore them.

Who World Bank don Epp?


They should get away!!

If the world bank can do this, then all the travelling up and down by the president is worthless.

ok

QuotaSystem:
It's not just Nigeria, but the growth forecast for the entire world economy has been reduced by the World Bank.

Wailers will never see this post..

www.nairaland.com/attachments/3817170_image_jpeg_jpeg6f95b5e7a24ad4fc0808d6698fd37362

Bad to worse

OK

APC has killed Nigeria's economy with shallow promise's !

All Promise's Cancelled!

Congratulations Boooohari!


Zombies will definitely justify their Host.

Our country changed to a SICK baby since Buhari and his sick ministers took over.



www.nairaland.com/attachments/2186225_change_jpeg_jpeg94b34b227702fbe5c47290c95691a634





www.nairaland.com/attachments/2638335_117378378808222686209331845457370151459142n_jpg21fab79f34191754f3edd356d25b008d

... Nigeria is heading for Zimbabwe. look like the Chinese yuan deal didn't help as many of us predicted. Nigeria is no more Africa biggest economy under APC. we should Thank God if we found ourselves in no 21of Africa economy index.

Joel3:
... Nigeria is heading for Zimbabwe. look like the Chinese yuan deal didn't help as many of us predicted. Nigeria is no more Africa biggest economy under APC. we should Thank God if we found ourselves in no 21of Africa economy index.

dragonking2:
Buhari has finished us in this country

ElPadrino33:
I miss GEJ. Zombies don't quote me please.

This ia becoming stale and pathetic. Did u guys read the body of the news or u just used the headline to masturbate and suit your wailing appetite?
You guys can keep hailing those blowing pipelines. Na me and u go suffer. Se Buhari dey London dey rest now? Na so dem politicians, go dey go Adisababa, Dubai, Oklahoma, Las Vegas, Red light district, dey go chop life, na me and u go hear am

I totally don't understand the meaning of this news , are we all gonna die ??

dragonking2:
Buhari has finished us in this country

this is a Global Circumstance,
Excess crude oil pump /brl #OpecFault

Not entirely Buhari's administration!

All will be well soon

dragonking2:
Buhari has finished us in this country

this is a Global Circumstance,
Excess crude oil pump /brl #OpecFault

Not entirely Buhari's fault!

All will be well soon

How did we get here with DullardPoo?
Where are the zombies?

YorubaHighness:
Gullibos, good is ready.

Same itouts praising ND Scavengers will soon come here to wail and blame 1) Buhari 2) Yorubas.

what is this Yoruba boy saying?.

only 5% people are making your economy to retard....and you 95% can't do anything...

your thousands of yams n cows ain't contributing any dime to the economy..

get sense for once even if it's only for today

Bohlund said, “The first quarter contraction does not come as a surprise, but the drop in oil production was actually less damaging to activity than anticipated, dragging on real Gross Domestic Product growth by only 0.2 percentage point in the period compared with 0.7 percentage point in the fourth quarter and 0.6 percentage point in 2015.
“Instead, it was manufacturing that experienced the sharpest drop in activity, falling by seven per cent year over year. This is likely to have been partly connected to a decline in domestic demand but also to the difficulties of importing input materials due to foreign exchange controls.”

My Compatriots, the bolded is the sole reason for this article. Whenever they don't see where to dump their goods, eye go dey pepper them. We all know the interest of those the world Bank is serving... It is definitely not that of Africa.

These Oyibos will never change. Fall in oil price that has made 26 states to owe months of salaries only affected GDP growth by 0.2 percent. But see how generous they were at allocating figures to the manufacturing sector.

It is easy to blame oil price and GEJ for this but a sound economic team will have weathered the storm

Comparing the current oil price now at $50 to when it was $50 under OBJ, the growth rate now is appalling

You can dismiss these stats as western propaganda but those are the figures potential investors use in determining which countries they move their monies to. Also they affect lending rates for international finance.

That is World Bank opinion. Our own destiny is in our own hands. Man can move mountains if he really believe. If we all come together and fight for a common cause no bad prediction will manifest. But boko haram goal is different from that of IPOB, Niger Delta goal is different from that of Fulani heardsmen, etc. With these anybody can predict anything. Let's all work for positive change. God bless Nigeria.