World Bank has projected an average economic growth rate of 3.6% for Nigeria between 2025 and 2026, attributing the positive outlook to recent reforms by the Federal Government, which have boosted business confidence.The bank advocates economic diversification to enhance inclusive growth.
According to the Global Economic Prospects, January 2025 report, Nigeria’s Gross Domestic Product (GDP) growth reached an estimated 3.3% in 2024, primarily driven by the services sector, including financial and telecommunications activities.
The report highlighted key macroeconomic and fiscal reforms that improved the business climate. These include the unification of the exchange rate, which eliminated the implicit foreign exchange subsidy, and improved revenue administration.
The World Bank noted that oil production, while expected to increase, would remain below Nigeria’s OPEC quota.
Inflation, which prompted monetary policy tightening in 2024, is projected to gradually decline, improving consumption and supporting further growth in the services sector.
Across Sub-Saharan Africa (SSA), the report forecasts growth to strengthen to 4.1% in 2025 and 4.3% in 2026. Regional projections have been revised upward, with nearly half of SSA economies expected to experience improved growth during the period.
The World Bank however, cautioned that Nigeria’s per capita income growth would remain weak over the forecast horizon, signalling the need for sustained reforms and economic diversification to enhance inclusive growth.
Author: Maureen Ikpeama