Nigeria’s Economic Growth Projected to Reach 4.4% by 2026–2027, Says World Bank

Despite persistent structural issues, the World Bank has maintained Nigeria’s economic growth projection at 4.4% for 2027, indicating continued optimism about the nation’s medium-term prognosis.

This is consistent with the forecast previously released in the World Bank’s Nigeria Development Update (NDU) in October 2025, according to the most recent edition of Global Economic Prospects.

Recall that, according to the most recent report from the National Bureau of Statistics (NBS), Nigeria’s GDP increased by 3.46% year over year in real terms during the third quarter of 2024.

As macroeconomic conditions improved, the Bretton Woods Institution likewise increased Nigeria’s growth prediction for 2026 from 3.7% in its June 2025 Global Economic Prospects report to 4.4%.

Nigeria’s economy is predicted by the World Bank to grow at a rate of 4.4% in 2026 and 2027, which is the fastest growth rate the nation has had in more than ten years.

The report states that a recovery in agricultural output, steady development in the services sector, and a slight acceleration in non-oil industrial activities will be the main drivers of this increase.

According to the bank, “growth in Nigeria is expected to strengthen to 4.4% in both 2026 and 2027—the fastest pace in over a decade.”

The Bank further stated that over the projection period, enhanced agricultural productivity and ongoing service expansion will continue to be the fundamental pillars bolstering economic performance.

According to the World Bank, continued economic reforms—especially in the tax system—along with prudent monetary policy are anticipated to boost macroeconomic stability and encourage economic development.

“It is anticipated that prudent monetary policy and economic reforms, including those in the tax system, will continue to support activity.”

The Bank stated that these policy initiatives should “improve investor sentiment and reduce inflation further.” This year, higher oil production is anticipated to counteract lower global oil prices, strengthening the external balance and increasing fiscal revenues, according to the World Bank.

The ongoing focus on non-oil growth demonstrates the progressive effects of Nigeria’s attempts to diversify its economy in order to lessen its dependency on crude oil exports.

Over time, increased agricultural productivity and a more robust services sector might help stabilize prices, provide jobs, and increase the government’s tax base.

Even while the nation is still navigating economic weaknesses, the World Bank’s prediction gives investors and officials some assurance that recent changes may start to produce noticeable dividends.

Additionally, the World Bank predicted that Sub-Saharan Africa’s growth would accelerate to 4.3% in 2026 thanks to resilient domestic investment, economic reforms, and declining inflation throughout the area.

The Bank anticipates that the global economy will continue to be robust, with growth slowing slightly to 2.6% in 2026 before increasing to 2.7% in 2027—an increase above its June prediction.

Even if geopolitical and climate-related risks are still high, the improving global picture is due to declining inflation, stabilizing financial conditions, and better-than-expected performance in a number of emerging and developing economies.