The World Bank has projected that Nigeria’s economy will grow by 3.5 per cent in 2025, and increase marginally by 0.2 per cent to reach 3.7 per cent in 2026. This forecast which is contained in the World Bank’s latest Global Economic Prospects report, reflects a modest recovery for the Nigerian economy amidst persistent economic challenges and global uncertainties.
According to the report, Nigeria’s economic growth improved to an estimated 3.3 per cent in 2024, driven primarily by strong activity in the services sector, particularly financial and telecommunication services. The report had it that “In Nigeria, growth increased to an estimated 3.3 per cent in 2024, mainly driven by services sector activity, particularly in financial and telecommunication services”.
The report further said that macroeconomic and fiscal reforms helped improve business confidence. It pointed out that in response to rising inflation and a weak naira, the Central Bank of Nigeria tightened monetary policy. “Meanwhile, the fiscal deficit narrowed due to a surge in revenues driven by the elimination of the implicit foreign exchange subsidy, following the unification of the exchange rate and improved revenue administration,” the World Bank said.