Nigeria Set for Fastest Economic Growth in Over a Decade

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The World Bank has projected that Nigeria’s economy will expand by 4.4 per cent in both 2026 and 2027, marking the fastest growth rate the country has seen in more than ten years.

Gossip News Now reports that the projection is contained in the World Bank’s Global Economic Prospects report released in January 2026.

The report upgraded Nigeria’s 2026 growth estimate to 4.4 per cent, up from the 3.7 per cent forecast in the Bank’s June 2025 report, while maintaining the 2027 projection at 4.4 per cent.

The revision reflects optimism about Nigeria’s medium-term economic outlook, even as structural challenges persist.

“Growth in Nigeria is forecast to strengthen to 4.4 per cent in both 2026 and 2027—the fastest pace in over a decade,” the World Bank stated.

The Bank attributed the projected growth to strong performance in the services sector, a rebound in agricultural output, and modest acceleration in non-oil industrial activities. Continued expansion in services and agriculture is expected to remain the main drivers of economic growth over the forecast period.

The focus on non-oil sectors highlights Nigeria’s gradual progress in economic diversification, reducing the country’s reliance on crude oil exports.

The World Bank also emphasized that ongoing reforms, particularly in the tax system, along with prudent monetary policies, are expected to support economic activity and maintain macroeconomic stability.

“Economic reforms, including in the tax system, along with continued prudent monetary policy, are expected to continue supporting activity,” the report said. These measures are also projected to boost investor confidence and help curb inflation.

While international oil prices remain relatively low, higher oil production is expected to offset price declines, supporting government revenues and the external balance.

“Higher oil output is expected to offset lower international oil prices this year, helping to boost fiscal revenues and strengthen the external balance,” the report stated.

The Bank’s forecast comes as Nigeria shows signs of economic recovery. Data from the National Bureau of Statistics indicates that the country’s GDP grew by 3.46 per cent year-on-year in real terms in the third quarter of 2025, reflecting gains across key sectors.

A stronger services sector and improved agricultural output are expected to create jobs, stabilise prices, and expand the government’s revenue base over time.

For investors and policymakers, the World Bank’s outlook signals renewed confidence that recent reforms may begin to deliver tangible results, even as economic vulnerabilities remain.

Regionally, Sub-Saharan Africa’s economy is projected to grow by 4.3 per cent in 2026, driven by reforms, resilient domestic investment, and easing inflation. Globally, the Bank expects growth to moderate slightly to 2.6 per cent in 2026 before rising to 2.7 per cent in 2027, reflecting improved prospects for emerging and developing economies despite ongoing geopolitical and climate-related risks.

TAGS: Economic Growth