World bank says Nigeria’s economy is on track
The World Bank announced yesterday that Nigeria’s economy is on track to record its fastest growth in more than a decade, upgrading its forecast for the country’s economic growth to 4.4 per cent for 2026 and 2027.
The World Bank disclosed this in its latest Global Economic Prospects report released yesterday. The latest growth forecast represents 0.7 and 0.6 percentage points from the 3.7 per cent and 3.8 per cent in June 2026.
The World Bank said: “In Nigeria, growth edged up to 4.2 percent in 2025. The increase was driven by expansion in the services sector—especially the finance and information and communication technology sectors—a modest recovery in agriculture, and the country’s emergence as a net exporter of refined petroleum products.
“Growth in Nigeria is forecast to strengthen to 4.4 percent in both 2026 and 2027—the fastest pace in over a decade. This further firming of growth is anticipated to be underpinned by a continued expansion in services and a rebound in agricultural output, with a modest acceleration in non-oil industry.
“Economic reforms, including in the tax system, along with continued prudent monetary policy, are expected to continue supporting activity.
“They are also expected to improve investor sentiment and reduce inflation further. Higher oil output is expected to offset lower international oil prices this year, helping to boost fiscal revenues and strengthen the external balance.”
However, the World Bank cautioned that sustaining the momentum will require addressing long-standing structural challenges. Although Nigeria adopted fiscal rules in 2007 to reduce the economy’s exposure to oil revenue volatility, weak institutional frameworks have historically undermined enforcement, resulting in an uneven record on fiscal discipline.
Current reform efforts, the World Bank noted, are aimed at tackling these structural bottlenecks to ensure that the projected growth is durable and inclusive.
With respect to the global economy, the World Bank said: “The global economy is proving more resilient than anticipated despite persistent trade tensions and policy uncertainty, according to the World Bank’s latest Global Economic Prospects report.
“Global growth is projected to remain broadly steady over the next two years, easing to 2.6% in 2026 before rising to 2.7% in 2027, an upward revision from the June forecast.”
