The World Bank has forecasted a promising economic outlook for Nigeria, projecting an average growth rate of 3.6% for the years 2025 and 2026.
This optimistic assessment is detailed in the latest edition of the Global Economic Prospects report, which highlights the impact of recent reforms implemented by the Federal Government aimed at enhancing business confidence.
According to the report, Nigeria's Gross Domestic Product (GDP) growth is estimated to have reached 3.3% in 2024, primarily driven by robust activities in the services sector, particularly in financial and telecommunications services.
The World Bank attributes this growth to significant macroeconomic and fiscal reforms that have positively influenced business sentiment. In response to escalating inflation and a depreciating naira, the Central Bank of Nigeria adopted a tighter monetary policy, which has contributed to stabilizing the economy.
The report also notes that the fiscal deficit has narrowed, thanks to increased revenues resulting from the elimination of implicit foreign exchange subsidies and improved revenue administration following the unification of the exchange rate.
These measures are expected to support a gradual decline in inflation, thereby boosting domestic consumption and further propelling growth in the services sector.
While the World Bank anticipates that oil production will see an increase during this period, it is expected to remain below the quotas set by the Organization of the Petroleum Exporting Countries (OPEC).
Despite these positive projections, challenges persist, including weak per capita income growth and ongoing structural issues such as inflationary pressures and high debt servicing costs.
In a broader context, growth across Sub-Saharan Africa is also projected to strengthen, with averages increasing from 4.1% in 2025 to 4.3% in 2026. This regional recovery is anticipated to be bolstered by easing financial conditions and declining inflation rates.
