W/Bank Forecasts 4.4% GDP Growth for Nigeria, Highest in Over a Decade

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‎Nigeria’s economy is poised for its strongest expansion in over a decade, according to the latest Global Economic Prospects report released by the World Bank. The report projects a robust 4.4% GDP growth in both 2026 and 2027, marking a significant upward revision from earlier forecasts and signaling renewed optimism for Africa’s largest economy.
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‎The World Bank attributes this positive outlook to a combination of factors, including a sustained rebound in the services sector, improved agricultural output, and a modest but steady recovery in non-oil industries such as manufacturing and construction.
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‎The ICT and financial services sectors continue to expand, buoyed by digital innovation and increased consumer demand. Favorable weather conditions and improved access to farming inputs have led to a resurgence in agricultural productivity, while infrastructure investments and policy reforms are supporting growth in manufacturing and construction.
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‎The January 2026 update reflects a notable shift from the Bank’s June 2025 projections. Nigeria’s 2025 growth estimate has been revised upward from 3.6% to 4.2%, while the 2026 and 2027 forecasts have each been raised to 4.4%, representing increases of 0.7 and 0.6 percentage points respectively.
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‎Despite the upbeat projections, the World Bank cautions that Nigeria still faces structural headwinds. Persistent inflation, exchange rate volatility, and fiscal constraints could temper the pace of growth if not addressed through sustained reforms. Nevertheless, the report underscores a “sustained optimism” for Nigeria’s medium-term economic trajectory, provided that macroeconomic stability is maintained and reforms continue.
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‎As Nigeria eyes a new era of economic expansion, policymakers are being urged to capitalize on the momentum by deepening structural reforms, improving governance, and fostering a more inclusive growth model that benefits all Nigerians.