IMF Report Says Nigeria Must Tackle Oil Theft To Grow Economy

Concerted efforts by the Nigerian government and its institutions to tackle oil theft will boost the economy from 3.0 per cent in 2022 to 3.2 per cent in 2023.

This was disclosed by the International Monetary Fund  in its World Economic Outlook Update report.

The IMF in its January 2023 report stated that growth across sub-Saharan Africa will moderate at 3.8 per cent in 2023 amid prolonged fallout from the COVID-19 pandemic.

It said, “In sub-Saharan Africa, growth is projected to remain moderate at 3.8 per cent in 2023 amid prolonged fallout from the COVID-19 pandemic, although with a modest upward revision since October, before picking up to 4.1 percent in 2024.

“The small upward revision for 2023 (0.1 percentage point) reflects Nigeria’s rising growth in 2023 due to measures to address insecurity issues in the oil sector. In South Africa, by contrast, after a COVID-19 reopening rebound in 2022, projected growth more than halves in 2023, to 1.2 percent, reflecting weaker external demand, power shortages, and structural constraints.” the report stated.

Due to pipeline vandals and oil thieves, Nigeria’s crude oil production plunged in 2022. Production crashed to a low of 0.937mbpd in September 2022 but rebounded to 1.235 million barrels per day in December 2022.

Globally, IMF explained that growth in economy will slow down in 2023 before bouncing back in 2024.

This is as the global fight against inflation and Russia’s war in Ukraine weigh on activity.