The recent Naira crunch is paralyzing Nigeria’s economy, the United Nations said. We find that the informal sector bears the brunt of the shortfall.
A continued decline in oil production will hit the country’s finances in 2023, he said. The United Nations made this clear in its latest report on trade and development. Global Trends and Prospects (April 2023), Report of the United Nations Conference on Trade and Development. UNCTAD said:
“On the other hand, the continued decline in oil production, accompanied by large-scale oil theft, poses a major threat to the strained finances of Africa’s most populous country.”
Africa’s overall economy is expected to grow by 2.5% year-on-year, according to the organization, insufficient to curb poverty on the continent. He said this was not due to weakening external demand or tightening funding conditions.
We found that many African economies are at risk of stagflation in 2023, with half of African countries experiencing double-digit inflation in early 2023.
UNCTAD emphasizes that: “Government debt, in many cases at levels not seen since the early 2000s, is another concern across the continent. Of the countries, 8 companies are already facing ‘debt problems’ and 13 are considered ‘high risk’ of problems.
The New York-based agency said many governments are unable to enter international capital markets, and as the maturities of international bonds issued in the last decade peak in 202 and remain high over the next decade, many of African economies are approaching the maturity wall.
Through maturing debt. The agency added: The rising cost of living and deteriorating security situation in the country remain a concern in many parts of the continent. Severe food insecurity now affects more than 116 million people in Africa, according to the latest WFP and FAO projections. ” Recently, the United Nations revealed that Nigeria’s economy will grow by 3% by 2023, driven by its commodity trade and consumer goods and services market.