The World Bank has upgraded Nigeria's economic outlook, citing improving macroeconomic management and reforms as growth strengthens across much of sub-Saharan Africa. According to the Bank's latest Africa Economic Update, Nigeria is among nearly three-quarters of African economies whose growth forecasts have been revised upward. The Bank listed Nigeria alongside Angola, Ethiopia, and Zambia among countries showing stronger economic performance.
The World Bank's Chief Economist for Africa, Andrew Dabalen, attributed the gains to years of reforms and improved economic management. He, however, warned that stronger headline growth must translate into jobs and improved living standards. The next challenge, Dabalen said, is turning growth into more jobs and better opportunities.
Sub-Saharan Africa's economy is now projected to expand by 4.3 per cent in 2026, up from 4.1 per cent in 2025. The World Bank attributed the improvement to stronger domestic demand, greater macroeconomic resilience, and investments associated with energy transition and digital technologies.
Despite the upgrade, the World Bank warned that geopolitical tensions, tighter financial conditions, natural disasters, disease outbreaks, and insecurity continued to threaten the recovery. The Bank also noted that growth remained insufficient to dramatically reduce extreme poverty or create enough jobs for Africa's rapidly expanding labour force.
Nigeria's macroeconomic performance improved further in 2026, with real GDP expanding by 4.2 per cent in the first half of the year, according to the Bank's country assessment. The institution said stronger agriculture and services had supported growth, while foreign reserves and the external position had also improved.
The World Bank currently projects Nigeria's economy to grow by an average of about 4.4 per cent between 2026 and 2028. The Bank stressed that Nigeria must now translate macroeconomic stabilisation into improved household welfare through stronger private investment, productivity, infrastructure, human capital, and social protection.
The Washington-based institution also noted that Nigeria is emerging as one of Africa's centres of artificial-intelligence activity. The Bank urged governments to invest in reliable electricity, affordable internet access, digital skills, computing infrastructure, and effective regulation to support the growth of AI applications.
Key points
- The World Bank upgraded Nigeria's economic outlook due to improving macroeconomic management and reforms.
- Nigeria's economy is projected to grow by an average of about 4.4 per cent between 2026 and 2028.
- The Bank stressed that Nigeria must translate macroeconomic stabilisation into improved household welfare through stronger private investment, productivity, infrastructure, human capital, and social protection.
