The World Bank forecasts robust economic growth for Nigeria between 2025 and 2026, driven by recent government reforms and a strong performance in the services sector. However, the Bank urges continued efforts to diversify the economy and enhance per capita income growth.
The World Bank anticipates a 3.6% average economic growth rate for Nigeria between 2025 and 2026, attributing this optimism to recent reforms implemented by the Federal Government, which have fostered increased business confidence. As outlined in the January 2025 Global Economic Prospects report, Nigeria 's Gross Domestic Product ( GDP ) growth reached an estimated 3.3% in 2024, primarily fueled by the services sector , encompassing financial and telecommunications activities.
The report underscores key macroeconomic and fiscal reforms that have contributed to an improved business climate. These include the unification of the exchange rate, which eliminated the implicit foreign exchange subsidy, and advancements in revenue administration.While projecting a positive trajectory, the World Bank acknowledges that oil production, although expected to rise, will likely remain below Nigeria's OPEC quota. Inflation, which prompted monetary policy tightening in 2024, is forecast to gradually decline, thereby enhancing consumption and supporting further growth in the services sector. Globally, the report predicts growth to strengthen to 4.1% in 2025 and 4.3% in 2026. Regional projections have been revised upward, anticipating nearly half of Sub-Saharan African (SSA) economies to experience improved growth during this period.However, the World Bank cautions that Nigeria's per capita income growth will remain sluggish throughout the forecast period, emphasizing the crucial need for sustained reforms and economic diversification to promote inclusive growth
Nigeria Economic Growth World Bank GDP Reforms Services Sector Inflation Sub-Saharan Africa
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