The World Bank has raised Nigeria's economic growth forecast to 4.4 percent. This would be the country's fastest growth rate in over a decade. The upgrade covers both 2026 and 2027. Analysts say reforms are finally bearing fruit.
Nigeria's economy grew by 4.2 percent in 2025. Services, finance, and technology sectors drove the expansion. The country also became a net exporter of refined petroleum products. Dangote Refinery began full operations last year. That reduced Nigeria's dependence on fuel imports. The Central Bank has maintained tighter monetary policy. Inflation has begun to ease from record highs. The government removed fuel subsidies in 2023. That painful reform saved billions in public spending. However, the naira remains volatile against the dollar.
The World Bank says reforms support sustained growth. Higher oil output will offset lower global prices. The non-oil sector continues to expand rapidly. Manufacturing and agriculture show positive signs. However, poverty remains high across the country. Household incomes have not kept pace with growth. Over 40 percent of Nigerians live below the poverty line. The government must create more jobs for young people. Infrastructure deficits still hamper business activity. The World Bank urges continued reform momentum.
