Nigeria’s economy is on track to grow at its fastest pace in more than ten years, according to a major new report from the World Bank. In its latest Global Economic Prospects outlook, the Washington-based development lender said Nigeria’s gross domestic product (GDP) is expected to strengthen significantly in both 2026 and 2027. The Bank now forecasts growth of 4.4 per cent in each of those years, a substantial increase from earlier predictions and the best performance in over a decade.
This updated outlook reflects several positive trends in Africa’s largest economy. Growth in 2025 is estimated to have reached about 4.2 per cent, up from the mid-range forecasts contained in previous reports. The World Bank says this rise was mainly driven by a strong performance in the services sector, which includes finance, telecommunications and other non-oil activities. There has also been a modest recovery in agricultural production and a small acceleration in other non-oil industrial sectors.
The services sector has been especially important to Nigeria’s improved prospects. Financial services and information and communications technology (ICT) companies have expanded rapidly, helping to offset slower growth in more traditional areas. The Bank also noted that Nigeria has begun to export more refined petroleum products, which helped lift overall economic performance last year.
Nigeria’s improved growth forecast comes amid a backdrop of significant policy changes. Over the past few years, the government has undertaken a series of economic reforms that many analysts say have strengthened macroeconomic stability. These measures included removing expensive fuel subsidies, allowing the naira to float freely against other currencies, and introducing reforms to the tax system. The World Bank says these policies have helped build confidence among investors and supported broader economic activity.
Despite these gains, the Bank cautioned that Nigeria still faces long-standing structural challenges. High inflation and poverty remain major concerns, with prices for basic goods still elevated for many households. The report noted that while inflation has started to ease, it remains significantly above target levels, and ongoing effort will be needed to bring it under control.
In addition to domestic issues, Nigeria must also navigate global economic conditions that are far from certain. The World Bank’s broader outlook for the world economy is modest, with growth in emerging markets expected to slow slightly. This environment makes sustained progress in areas such as job creation and poverty reduction more difficult.
The Bank’s report also highlighted the importance of continued reforms to ensure that growth is inclusive and benefits a wide range of Nigerians. It suggested that improvements in areas such as fiscal transparency, agriculture, and infrastructure will be crucial for translating macroeconomic gains into better living standards.
Overall, the World Bank’s updated forecasts signal cautious optimism for Nigeria’s economic future. Achieving growth of 4.4 per cent in 2026 and 2027 would mark the strongest run of expansion in more than a decade. But turning this growth into meaningful improvements in everyday life for the average Nigerian, the Bank said, will require persistent policy effort and structural change.
