- More people will become poor in Nigeria by the year 2022, says world bank
- An additional 6 million people will be reportedly pushed into poverty
- The rise is due to the ravaging coronavirus pandemic
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In what will come as a shock to many Nigerians, about 6 million additional people in the country are projected to be pushed into poverty by 2022 as a result of the rampaging coronavirus.
The World Bank gave this prediction recently while disclosing how the pandemic will alter things in the country.
Specifically, the bank in a report released recently predicted that there would be 95.7 million Nigerians living below the poverty line by 2022.
The bank stated that without the virus, 90 million Nigerians were projected to be in poverty by 2022.
It said the virus would add about 6 million to that figure in two years.
Meanwhile, Legit.ng had reported that the World Bank has revealed two key factors that may plunge Nigeria into worse recession.
The two key factors are the crash in global oil prices and the ravaging coronavirus pandemic, according to a report.
The World Bank in a statement titled Nigeria In Times of COVID-19: Laying Foundations for a Strong Recovery, estimated that Nigeria’s economy would likely contract by 3.2% in 2020.
Crash in oil price
Despite the economic diversification rhetorics by the government, oil still represents more than 80% of Nigeria’s exports and 50% of the overall government revenue.
Thus, as the oil prices dropped globally, the government revenue is expected to fall from an already low 8% of GDP in 2019 to a projected 5% in 2020.
Nigeria confirmed its index Covid-19 case late February 2020. Months after, the country now has 22,614 confirmed cases out of which 7,822 have recovered. Thus far, 549 have died from the virus complications.
The bank reveals five steps Nigeria should take recover from the COVID-19 economic crisis. These are
1. Containing the outbreak and preparing for a more severe outbreak
2. Enhancing macroeconomic management to boost investor confidence;
3. Safeguarding and mobilizing revenues;
4. Reprioritizing public spending to protect critical development expenditures and stimulate economic activity
5. Protecting poor and vulnerable communities.
Meanwhile, the bank, however, said the Nigerian government had already taken some important measures to contain the outbreak and moderate the recessionary pressures.
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