
The World Bank has projected Nigeria’s economy to grow by 3.5% in 2025, rising slightly to 3.7% in 2026. These forecasts, published in the latest Global Economic Prospects report, signal a modest recovery amidst ongoing economic challenges and global uncertainties.
The report notes that Nigeria’s economic growth improved to an estimated 3.3% in 2024, driven by strong activity in the services sector, particularly in financial and telecommunication services. It highlights the impact of macroeconomic and fiscal reforms, which boosted business confidence and reduced the fiscal deficit through enhanced revenue administration and the elimination of the implicit foreign exchange subsidy.
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.
Despite these optimistic projections, the report identifies risks to economic recovery, including inflationary pressures, currency weaknesses, high debt servicing costs, and fragile fiscal buffers. Regional growth is forecasted at 2.2% in 2024, supported by Nigeria’s improved oil output and South Africa’s enhanced electricity supply, with Sub-Saharan Africa averaging 4% growth.