The World Bank Yesterday, the Nigerian economy was forecast to grow by 3.6% on average between 2025 and 2026, with the Federal Government’s recent reforms contributing to increased corporate confidence. According to the World Bank’s study Global Economic Prospects, January 2025.
According to the World Bank: “In Nigeria, Gross Domestic Product, GDP, growth increased to an estimated 3.3 percent in 2024, mainly driven by services sector activity, particularly in financial and telecommunication services.”Macroeconomic and fiscal reforms boosted business confidence. In reaction to growing inflation and a weak naira, the central bank tightened monetary policy.
Meanwhile, the fiscal deficit shrank as a result of an increase in revenues caused by the elimination of the implicit foreign exchange subsidy, which followed the unification of the exchange rate and improved revenue administration.
“Growth in Sub-Saharan Africa (SSA) is predicted to firm to 4.1 percent in 2025 and 4.3 percent in 2026, as financial conditions relax and inflation falls further. Following weaker-than-expected regional growth last year, growth predictions for 2025 and 2026 have been revised upward by 0.2 and 0.3 percentage points, respectively, with improvements observed across various subgroups. At the country level, nearly half of SSA economies’ expected growth in 2025 and 2026 has been revised upward.
“Growth in Nigeria is expected to accelerate to an average of 3.6 percent per year in 2025–26. Following monetary policy tightening in 2024, inflation is expected to progressively fall, increasing demand and sustaining growth in the services sector, which remains the primary engine of GDP. Oil production is predicted to rise over the projection period while remaining below the OPEC quota. The baseline forecast indicates that per capita income growth will remain sluggish over the forecast period.”
