World Bank Projects Nigeria’s Economy to Grow by 4.3% in 2026

The World Bank has raised its economic growth forecast for Nigeria to 4.3 per cent in 2026, citing improved macroeconomic stability, stronger investor confidence and a gradual recovery in private investment.

In its latest economic outlook, the global lender projected that Nigeria’s economy would grow by an average of 4.4 per cent annually in 2027 and 2028, compared with an estimated four per cent growth in 2025. The projection follows stronger economic performance in the first half of 2026, when the country recorded growth of 4.2 per cent, supported largely by the services and agricultural sectors.

The World Bank identified the removal of petrol subsidies and foreign exchange market reforms as key measures supporting the improved outlook. It urged the Federal Government to sustain the reforms to strengthen economic performance and ensure that their benefits translate into better living conditions for Nigerians.

However, the bank cautioned that rising government expenditure ahead of the 2027 general elections, alongside global economic uncertainty, insecurity and climate-related challenges, could threaten the progress made. It also warned that improved economic growth alone may not significantly reduce poverty unless more Nigerians experience higher incomes and better access to opportunities.

The lender projected that inflation would gradually decline in the coming years, potentially easing pressure on households. It stressed that sustained reforms, improved public spending, stronger infrastructure and increased investment in human capital would be essential to making economic growth more inclusive.