The World Bank has projected that Nigeria’s economy will experience its fastest growth in more than ten years in 2026 and 2027, after revising its growth forecast upward to 4.4 percent for both years.
The projection was contained in the World Bank’s latest Global Economic Prospects report, released recently.
According to the Bank, Nigeria’s economic growth rose to 4.2 percent in 2025, largely driven by expansion in the services sector, particularly finance and information and communication technology.
It said, “In Nigeria, growth edged up to 4.2 percent in 2025. The increase was driven by expansion in the services sector— especially the finance and information and communication technology sectors—a modest recovery in agriculture, and the country’s emergence as a net exporter of refined petroleum products.”
The Bank noted that growth is expected to rise further to 4.4 percent in both 2026 and 2027, representing the fastest pace in over a decade, supported by sustained growth in services, a rebound in agriculture, and a modest improvement in non-oil industrial activities.
The report added that ongoing economic reforms, including enhancements to the tax system and the continuation of prudent monetary policy, are expected to support economic activity, boost investor confidence, and further ease inflationary pressures.
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It also stated that increased oil production is expected to help cushion the impact of lower global oil prices, leading to higher fiscal revenues and a stronger external balance.
“Nigeria is forecast to strengthen to 4.4 percent in both 2026 and 2027—the fastest pace in over a decade. This further firming of growth is anticipated to be underpinned by a continued expansion in services and a rebound in agricultural output, with a modest acceleration in non-oil industry. Economic reforms, including in the tax system, along with continued prudent monetary policy, are expected to continue supporting activity. They are also expected to improve investor sentiment and reduce inflation further.
“Higher oil output is expected to offset lower international oil prices this year, helping to boost fiscal revenues and strengthen the external balance.”
On the regional outlook, the World Bank projected that economic growth in Sub-Saharan Africa (SSA) will increase to 4.3 percent in 2026, driven by reforms in some major economies, strong domestic investment growth, and easing inflation.
However, the report cautioned that despite the improved outlook, per capita income growth across the region remains too weak to significantly reduce extreme poverty or generate sufficient employment, while risks such as weaker external demand, declining commodity prices, political instability, and reduced donor support could affect growth prospects.
“Growth in Sub-Saharan Africa (SSA) is forecast to firm to 4.3 percent in 2026, supported by ongoing reforms in some large economies, solid domestic investment growth, and a continued easing of inflation. In many economies, fiscal consolidation efforts are being prompted by the narrowing of fiscal space resulting from cuts to official development assistance, elevated government debt, and higher debt-servicing costs.
“Despite the improved growth outlook, per capita income gains will remain inadequate for significant progress in reducing extreme poverty and boosting job creation. Risks to the outlook remain tilted to the downside. Weaker-than-expected external demand, lower commodity prices, increased regional political instability, and worsening conflict could dent growth prospects. Further declines in donor support could heighten the vulnerability of SSA economies to shocks, including public health risks and natural disasters.”