The World Bank has projected that Nigeria’s economy will grow by 4.3 per cent in 2026, up from an estimated 4.0 per cent in 2025. The institution expects economic growth to increase further to an average of 4.4 per cent annually in 2027 and 2028.
The forecast reflects improving macroeconomic stability, growing investor confidence and a gradual recovery in private-sector investment. However, the World Bank has stressed that sustaining the ongoing economic reforms will be essential to achieving the projected growth.
According to the bank’s latest economic outlook, Nigeria recorded 4.2 per cent growth in the first half of 2026, compared with 3.9 per cent in the corresponding period of 2025. The services sector was the major driver of growth, alongside a stronger contribution from agriculture.
The institution also noted that reforms introduced by the Federal Government, including the removal of petrol subsidies and the liberalisation of the foreign exchange market, remain important to improving the country’s economic outlook.
The World Bank has urged the government to maintain these reforms and ensure that their benefits translate into improved living standards, greater economic opportunities and poverty reduction.
Inflation is also expected to decline gradually, potentially reaching about 12 per cent by 2028, compared with approximately 15 per cent around the current period. Nevertheless, the bank cautioned that sustained progress will depend on effective economic management and continued implementation of reforms.
Beyond the national economy, the World Bank reported a significant increase in state government revenues. Real state revenues rose by approximately 93 per cent between 2023 and 2025. It urged state governments to use the additional resources more efficiently, particularly by investing in education, healthcare, infrastructure and other areas that can improve human capital and living standards.
Speaking at the presentation of the economic outlook, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the projections as evidence that the administration’s economic reforms were beginning to produce results.
He maintained that Nigeria’s economy was growing faster than its population and expressed optimism that continued progress could contribute to reducing poverty.
The minister also called on Nigerians to support the reforms, arguing that the decisions were necessary to strengthen the economy and improve its long-term prospects.
Although the projected growth offers a positive outlook, translating economic expansion into better living conditions for ordinary Nigerians remains a major challenge. Sustained reforms, productive investment, effective public spending and the creation of more jobs will be critical to ensuring that economic gains are widely shared.
