The World Bank has projected that Nigeria’s economy will grow by 4.4 per cent in both 2026 and 2027, describing the outlook as the country’s fastest growth pace in over a decade.
Naijaonpoint reports that the projection is contained in the Global Economic Prospects report released by the Bretton Woods institution in January 2026.
According to the report, the Bank upgraded Nigeria’s 2026 growth estimate to 4.4 per cent, from the 3.7 per cent it projected in its June 2025 Global Economic Prospects report, while retaining the 2027 forecast at 4.4 per cent.
The upgrade reflects sustained optimism about Nigeria’s medium-term economic outlook, amid signs of improving macroeconomic fundamentals despite persistent structural challenges.
“Growth in Nigeria is forecast to strengthen to 4.4 per cent in both 2026 and 2027—the fastest pace in over a decade,” the World Bank stated.
The Bank attributed the projected expansion largely to sustained growth in the services sector, a rebound in agricultural production, and a modest acceleration in non-oil industrial activities.
It noted that continued expansion in services and improved agricultural output would remain the key pillars supporting economic performance over the forecast period.
The emphasis on non-oil sectors underscores Nigeria’s gradual progress in economic diversification, aimed at reducing overdependence on crude oil exports.
The World Bank also highlighted the role of ongoing economic reforms, particularly within the tax system, alongside prudent monetary policy, in strengthening economic activity and macroeconomic stability.
“Economic reforms, including in the tax system, along with continued prudent monetary policy, are expected to continue supporting activity,” the Bank said.
It added that these measures would help to improve investor sentiment and further reduce inflation.
While noting lower international oil prices, the Bank said higher oil output is expected to help offset price declines, thereby supporting government finances.
“Higher oil output is expected to offset lower international oil prices this year, helping to boost fiscal revenues and strengthen the external balance,” the report stated.
The World Bank’s optimism comes as Nigeria’s economy continues to show signs of recovery.
According to the National Bureau of Statistics, Nigeria’s Gross Domestic Product grew by 3.46 per cent year-on-year in real terms in the third quarter of 2025, reflecting improved performance across key sectors.
It is expected that a stronger services sector and improved agricultural output could help create jobs, stabilise prices, and broaden the government’s revenue base over time.
For investors and policymakers, the World Bank’s forecast offers renewed confidence that recent reforms may begin to yield tangible results, even as the country continues to grapple with economic vulnerabilities.
On the broader regional outlook, the World Bank said economic growth in Sub-Saharan Africa is expected to strengthen to 4.3 per cent in 2026, supported by reforms, resilient domestic investment, and easing inflation.
Globally, the Bank projected that economic growth would ease slightly to 2.6 per cent in 2026, before rising to 2.7 per cent in 2027, representing an upward revision from its June forecast.
It attributed the improved global outlook to moderating inflation, stabilising financial conditions, and stronger-than-expected performance in several emerging and developing economies, despite elevated geopolitical and climate-related risks.