World Bank projects 3.5% GDP growth for Nigeria in 2025, 3.7% in 2026 

These forecasts, detailed in the World Bank’s latest Global Economic Prospects report, suggest a steady but modest recovery for Nigeria amidst ongoing domestic and global challenges.

Growth in Nigeria increased to an estimated 3.3% in 2024, primarily driven by strong performance in the services sector, notably in financial and telecommunication services.

The World Bank noted that macroeconomic and fiscal reforms implemented in 2024 helped improve business confidence.

The projected growth for 2025 and 2026 reflects an expected rebound in consumption, supported by gradually declining inflation following monetary policy tightening by the Central Bank of Nigeria in 2024.

The services sector is anticipated to remain the main driver of growth, while oil production is expected to increase modestly but remain below the country’s OPEC quota.

The World Bank said in its report, “Growth in Nigeria is forecast to strengthen to an average of 3.6% a year in 2025-26.

Following monetary policy tightening in 2024, inflation is projected to gradually decline, boosting consumption and supporting growth in the services sector, which continues to be the main driver of growth.

Oil production is expected to increase over the forecast period but remains below the OPEC quota.

The baseline forecast implies that per capita income growth will remain weak over the forecast horizon.”

Despite these positive developments, the World Bank emphasised that per capita income growth will likely remain weak over the forecast horizon.

The persistence of structural issues, including inflationary pressures, a weak naira, and underperforming oil production, pose significant risks to sustained economic recovery. Rising debt-servicing costs and limited fiscal buffers further complicate Nigeria’s economic outlook.