The World Bank has projected Nigeria’s economy to grow by 3.5% in 2025, with a slight increase to 3.7% in 2026. These forecasts, outlined in the latest Global Economic Prospects report, indicate a modest recovery amid ongoing economic challenges and global uncertainties.
According to the report, robust activity in the services sector, especially in financial and telecommunication industries, propelled Nigeria’s economic growth to an expected 3.3% in 2024. It draws attention to the effects of fiscal and macroeconomic reforms, which eliminated the implicit foreign currency subsidy, improved revenue administration, and increased business confidence while lowering the fiscal deficit.
The World Bank anticipates that declining inflation, resulting from monetary policy tightening in 2024, will bolster domestic consumption and support the services sector as the primary growth driver. Higher oil production, although below OPEC quotas, and improved domestic demand are also expected to contribute to the 2025–2026 growth.
The report notes dangers to economic recovery, including as inflationary pressures, currency weakness, high debt servicing costs, and poor fiscal buffers, notwithstanding these hopeful forecasts. Nigeria’s increased oil production and South Africa’s better energy supply are expected to support regional growth of 2.2% in 2024, with Sub-Saharan Africa averaging 4% growth.
