Nigeria’s economic growth drops in 2018 – World Bank

The World Bank has said the projected growth of Nigeria's economy in
2018 would drop from 2.1 per cent it had estimated for the country in
April to 1.9 per cent.

It stated this in its October 2018 'Africa Pulse,' a bi-annual
analysis of the state of African economies, which was signed by Cesar
Calderon and released yesterday in Washington, USA via the World Bank
official website.

It said the renewed clashes between farmers and herdsmen which were
recorded in most part of the year contracted the productivity of the
agricultural sector.

It explained: "In Nigeria, declining oil production and contraction in
the agriculture sector partially offset a rebound in the services
sector and dampened non-oil growth, all of which affected economic
recovery.

"Nigeria's recovery faltered in the first half of the year. Oil
production fell, partly due to pipeline closures.

"The agriculture sector contracted, as conflict over land between
farmers and herders disrupted crop production, partially offsetting a
rebound in the services sector and dampening non-oil growth.

"In Nigeria, declining oil production and contraction in the
agriculture sector partially offset a rebound in the services sector
and dampened non-oil growth, all of which affected economic recovery.

"The external environment facing Sub-Saharan Africa is more
challenging for several reasons. These include moderating economic
growth among its main trading partners, the stronger US dollar,
heightened trade policy uncertainty, and tightening global financial
conditions.

"While the tightness of oil supply suggests that oil prices are likely
to remain elevated through the rest of 2018 and into 2019, metals
prices have been softer than previously forecast and may remain
subdued in 2019 and 2020 amid muted demand, particularly in China.

"Against this backdrop, the economic recovery in Sub-Saharan Africa is
expected to continue at a gradual pace, supported by a rebound in oil
production in Nigeria and Angola, the easing of drought conditions
that had depressed agricultural output, and a rise in domestic demand
in some countries.

"The inefficiencies in the way the region combines its factors of
production has become increasingly relevant in explaining Sub-Saharan
Africa's lower aggregate productivity compared to industrialised
countries."