The World Bank has raised its forecast for Nigeria’s economic growth in 2026 to 4.3 per cent, up from the estimated 4.0 per cent recorded in 2025, citing improving economic stability, stronger investor confidence and a gradual recovery in private investment.
The projection was contained in the bank’s latest economic outlook, which also forecasts that Nigeria’s economy will expand by an average of 4.4 per cent annually in 2027 and 2028.
According to the World Bank, Nigeria’s economy grew by 4.2 per cent in the first half of 2026, with services and agriculture serving as major drivers of economic activity.
The bank attributed the improved outlook partly to economic reforms, including the removal of petrol subsidies and foreign exchange market liberalisation. It urged the Federal Government to sustain the reforms to strengthen the country’s economic prospects.
However, the lender warned that stronger economic growth would not automatically translate into improved living standards for Nigerians. It stressed the need for policies that generate employment, improve public services and reduce poverty.
The World Bank also cautioned that rising government spending ahead of the 2027 general elections could undermine fiscal discipline and threaten the progress made through recent reforms.
On inflation, the bank projected a gradual decline over the medium term, with the rate expected to fall to around 12 per cent by 2028, provided economic reforms are sustained and key risks are managed.
The latest forecast offers a more positive outlook for Nigeria’s economy, but the World Bank maintained that sustained reforms, responsible public spending and improved service delivery would be essential to ensuring that economic gains benefit ordinary Nigerians.
