The World Bank has projected Nigeria’s Gross Domestic Product (GDP) to grow at an average annual rate of 3.6% in 2025 and 2026, surpassing the 3.3% growth recorded in 2024. This was revealed in its latest Global Economic Prospects report for Sub-Saharan Africa.
According to the report, the growth in 2024 was largely driven by the strong performance of Nigeria’s financial and telecommunications sectors. It highlighted that macroeconomic and fiscal reforms significantly bolstered business confidence.
“To address rising inflation and a weakened naira, the Central Bank of Nigeria implemented tighter monetary policies,” the report noted.
Additionally, the World Bank observed a reduction in Nigeria’s fiscal deficit, attributed to increased revenues from the removal of the implicit foreign exchange subsidy. The unification of exchange rates and improved revenue administration were also key factors in achieving this fiscal improvement.
Looking ahead, the bank expects inflation to ease gradually, which should lead to higher consumer spending and sustained growth in the services sector, a critical driver of Nigeria’s economy.
The projections reflect optimism about the country’s economic stability, underpinned by the monetary policy adjustments and reforms carried out in the previous year.