By Ebi Kesiena
The World Bank has projected that Nigeria’s economy will expand by 3.5% in 2025, with a slight increase to 3.7% in 2026. This forecast is part of the latest Global Economic Prospects report, which highlights a modest recovery for Nigeria despite ongoing economic challenges and global uncertainties.
The report indicates that Nigeria’s economic growth improved to an estimated 3.3% in 2024, largely due to robust performance in the services sector, particularly in financial and telecommunication services.
“Growth in Nigeria increased to an estimated 3.3% in 2024, driven mainly by the services sector, especially financial and telecommunication services,” the report noted.
Macroeconomic and fiscal reforms have bolstered business confidence. The Central Bank of Nigeria tightened monetary policy in response to rising inflation and a weakened naira. Additionally, the fiscal deficit narrowed, boosted by a surge in revenues following the elimination of the implicit foreign exchange subsidy and the unification of the exchange rate, along with improved revenue administration.
Local media reports also draw attention to the World Bank’s assertion that Nigeria’s projected growth for 2025 and 2026 will be supported by gradually declining inflation, a result of monetary tightening measures implemented in 2024.
“This anticipated decline in inflation is expected to enhance domestic consumption and further support the services sector, which continues to be the primary driver of economic growth,” the report concluded.
