Nigeria’s economy to grow at 4.3% in 2026 —World Bank
Nigeria’s economy is projected to grow by 4.3 percent in 2026 and to maintain an average growth rate of 4.4 percent from 2027 to 2028, according to the World Bank’s latest Nigeria Development Update (NDU) released in Abuja on Tuesday.
The report states that, with continued government reforms, both poverty and inflation rates are expected to decline. “Economic activity in Nigeria is projected to strengthen from 4.0 percent in 2025 to 4.3 percent in 2026, before edging up to 4.4 percent annually in 2027 and 2028,” the World Bank noted.
Key reforms, including the contentious removal of petrol subsidies and the liberalization of exchange rates, are crucial for sustaining growth and improving economic conditions, the report emphasized. The bank urged the government to uphold these reforms to realize their full potential.
Amid ongoing debates about the fuel subsidy, some presidential candidates have proposed reinstating it if elected in next year’s general election.
In the first half of 2026, Nigeria’s economy expanded by 4.2 percent, up from 3.9 percent in 2025. Growth has been primarily fueled by the services and agriculture sectors. The World Bank also predicts that inflation will decrease to around 12 percent by 2028, down from approximately 15 percent.
Despite challenges, such as geopolitical tensions, climate shocks, and declining development assistance, the economy of sub-Saharan Africa showed resilience, according to the report. The World Bank noted that state revenues increased by approximately 93 percent in real terms between 2023 and 2025, although it called on state governments to improve spending efficiency and invest more in human capital to enhance living standards and alleviate poverty.
Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele addressed the report’s findings, stating that the projections reflect the effectiveness of the current administration’s reforms. He pointed out that Nigeria’s economy is currently growing faster than its population, which is expected to contribute to a reduction in poverty levels.
Oyedele encouraged Nigerians to support the ongoing reforms, asserting that their implementation serves the best interests of the nation’s economy.
