World Bank economists see a turning point in Nigeria’s economic story as growth momentum builds.
First, the World Bank says Nigeria’s economy will grow faster over the next two years.
In its Global Economic Prospects report released in January 2026, the Bank retained a 4.4% growth forecast for 2027.
At the same time, this projection aligns with the Nigeria Development Update published in October 2025.
More importantly, the Bank raised its 2026 growth estimate to 4.4% from 3.7% forecast in June 2025.
According to the Bank, improving macroeconomic conditions and stronger policy coordination drove the revision.
If Nigeria meets these targets, growth of 4.4% in 2026 and 2027 will mark the fastest pace in over a decade.
World Bank Forecasts Growth
Looking ahead, the World Bank expects services, agriculture, and non-oil industries to drive expansion.
In particular, services continue to lead growth, while agriculture shows signs of steady recovery.
Meanwhile, non-oil industrial activity should improve gradually under better policy conditions.
Policy Support
The Bank further explained that ongoing reforms, especially tax changes, support the outlook.
In addition, prudent monetary policy continues to anchor growth and economic stability.
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As a result, these measures should lift investor confidence and ease inflation pressures.
At the same time, higher oil production should counter weaker global oil prices this year.
Consequently, stronger oil output should boost government revenues and improve Nigeria’s external balance.
Why It Matters
Overall, the forecast shows Nigeria steadily reducing its dependence on crude oil exports.
Over time, stronger services and agriculture can create jobs, stabilise prices, and broaden government revenues.
For investors and policymakers, the outlook offers cautious confidence that reforms are delivering results.
Beyond Nigeria, the Bank expects Sub-Saharan Africa’s growth to reach 4.3% in 2026.
Across the region, reforms, resilient investment, and easing inflation drive the outlook.
Globally, the Bank projects growth at 2.6% in 2026, before rising to 2.7% in 2027.
Despite this, geopolitical and climate risks continue to cloud the outlook.
Finally, recent data supports the positive trend.
According to official figures, Nigeria’s GDP grew 3.46% year on year in the third quarter of 2024.
