By Milcah Tanimu

The United Nations, in its World Economic Situation and Prospects report for 2024 released on Monday, has projected a potential decline in Nigeria’s economic growth for the year. Despite projecting an acceleration in Nigeria’s growth rate from 2.9% in 2023 to 3.1% in 2024, the UN warns of challenges that could lead to a downturn.

The collaborative effort involved the United Nations Conference on Trade and Development, the five United Nations Regional Commissions, and the Department of Economic and Social Affairs of the United Nations.

The report attributes the moderately improved economic prospects for 2024 to policy measures implemented in 2023, particularly in the oil industry. It highlights policy reforms in the hydrocarbon sector as contributing to this positive outlook.

However, the report cautions against potential downward risks to growth prospects, citing concerns such as escalating public debt, persistent inflation, a rising cost of living, and a weak business environment.

Additionally, the report mentions the likelihood of lower national petrol prices in 2024 if efforts are made locally to increase oil refining capacity.

On a global scale, the UN report notes that global trade remained low in 2023, with Africa contributing to this trend by experiencing almost no year-over-year growth in the volume of merchandise trade on the continent.