WORLD BANK RAISES NIGERIA’S 2026 GROWTH FORECAST TO 4.3%

The World Bank has raised its forecast for Nigeria’s economic growth in 2026 to 4.3 per cent, citing improving macroeconomic stability, stronger investor confidence and a gradual recovery in private investment.

The projection was contained in the bank’s October 2026 Africa Economic Update, which also raised Nigeria’s growth forecast for 2027 and 2028 to 4.4 per cent annually.

Nigeria’s economy grew by 4.43 per cent year-on-year in the second quarter of 2026, compared with 4.23 per cent in the same period of 2025.

Agriculture grew by 4.39 per cent, while services expanded by 4.6 per cent. Real oil GDP increased by 7.3 per cent, although its contribution to overall growth remained limited.

The World Bank identified financial services, information and communications technology and real estate among the sectors supporting growth, alongside resilient domestic demand and increasing digitalisation.

However, the bank warned that higher government spending ahead of the 2027 general elections could weaken the momentum of economic reforms and efforts to maintain macroeconomic stability.

It also noted that industrial growth had slowed, reflecting weaker performance in oil production and manufacturing.

The World Bank expects Nigeria’s growth outlook to remain positive but said continued reforms and sound economic management would be important to sustaining the recovery.