Nigeria's Economic Growth to Slow to 3.7% by 2027

The African Development Bank Group (AfDB) has projected that Nigeria's economic growth will decelerate to 3.7% in 2027, primarily due to a decrease in global oil prices, which will reduce external revenue inflows. This projection is part of the AfDB's African Economic Outlook 2026 report.

The report anticipates that Nigeria's growth will rise to 4.0% in 2025 and 4.1% in 2026, supported by increased oil production, expansion in the services sector, and heightened public investment in electricity, transport, and logistics. However, the AfDB warns that Africa's medium-term outlook remains vulnerable due to supply chain disruptions, inflationary pressures, and exchange rate depreciation.

The report also highlights the need for African countries to adopt coordinated fiscal and monetary reforms to mitigate the impacts of recurring global shocks and to improve domestic resource mobilization and tax administration.