World Bank says Nigeria’s fiscal balances are improving

The World Bank has stated that fiscal balances are improving, largely due to the ongoing fiscal consolidation efforts in Nigeria and other Sub-Saharan African nations. The bank noted this in its latest Africa’s Pulse report, stressing that fiscal balances are improving but at a moderate pace. On Nigeria, it stated: “Fiscal balances continue to improve, thanks to the fiscal consolidation measures underway in several Sub-Saharan African countries, for instance, Ghana, Kenya, and Nigeria.” The report indicates a slight decrease in the median fiscal deficit across the region, from 3.8 per cent of gross domestic product (GDP) in 2023 to 3.5 per cent in 2024. It stated that although most countries in the region, 31 out of 46, are expected to see an improvement in their fiscal balances, “their deficits persist at significant levels: the median fiscal deficit among these 31 nations is anticipated to narrow from 4.8 per cent of GDP in 2023 to 3.8 per cent in 2024.”