By Milcah Tanimu
The World Bank has projected a 3.6% economic growth for Nigeria from 2025 to 2026. The report, Global Economic Prospects for January 2025, credits recent federal government reforms for boosting business confidence.
The World Bank estimated Nigeria’s GDP growth at 3.3% in 2024. The services sector, especially financial and telecommunications services, drove this growth. Macroeconomic and fiscal reforms helped improve business sentiment. In response to rising inflation and a weak naira, the Central Bank of Nigeria tightened monetary policy.
The fiscal deficit narrowed, with a surge in revenues due to the removal of the foreign exchange subsidy. The exchange rate unification and improved revenue collection played a key role.
The World Bank also forecasted stronger growth across Sub-Saharan Africa (SSA), with projections of 4.1% in 2025 and 4.3% in 2026. Nigeria’s growth is expected to remain at 3.6%. Inflation is predicted to decline gradually, supporting consumption and services sector growth. Oil production may increase but will still fall below OPEC quotas. However, per capita income growth will remain weak.
