The United Nations says the Nigerian economy will grow by 3 percent in 2023, according to its report titled ‘2023 world economic situation and prospects.
The UN said poor power supply in the country, and the Nigerian economy would benefit from robust commodities trade and dynamic consumer goods and services markets.
The report was produced by the United Nations Department of Economic and Social Affairs (UN DESA), in partnership with the United Nations Conference on Trade and Development (UNCTAD) and five United Nations regional commissions.
“High inflation and power supply issues are impacting growth in Nigeria, but the economy will benefit from robust commodities trade and dynamic consumer goods and services markets, bringing growth to 3 percent in 2023” the report reads.
The organization said aggregate output in Africa is projected to remain subdued amid a volatile and uncertain global environment compounding domestic challenges.
The UN also said favorable export prices would benefit commodity exporters in Africa but a slowdown in global demand would pose challenges.
It added that African mineral exporters — Botswana, the Democratic Republic of the Congo, Namibia, Nigeria, Sierra Leone, South Africa, the United Republic of Tanzania, Zambia, and Zimbabwe– would likely receive increased investments, with Europe looking for alternative sources of critical minerals, metals, and precious stones.
“Inflation pressures are expected to ease in 2023 as monetary policy tightens across the continent. Yet, rapidly rising borrowing costs and debt-servicing burdens pose significant risks along with electoral instability and food insecurity,” the report reads.
According to the UN, presidential and parliamentary elections will be held in 17 nations, including Nigeria, in 2023, and national elections will be held in 13 additional countries in 2024.
Additionally, it noted that worsening socioeconomic conditions, such as slow wage growth, rising living expenses, and worries about food security, could make it difficult for the current or next administrations to address public discontent.
According to the organization, if insecurity were to endure or grow, the economic outlook for impacted and neighboring nations might worsen significantly, even though a steady drop in political and military tensions is anticipated.
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