World Bank Reports Nigeria's Economic Growth and Challenges

The World Bank released a report on Nigeria's economic reforms and inflation, noting a 4.0% growth in real gross domestic product (GDP) for 2025, following a 4.1% expansion in 2024. The service sector, particularly information, communication, technology, financial services, and real estate, was highlighted as a key driver of this growth.

The report, released on Tuesday, also indicated a significant decline in inflation, with food inflation experiencing a sharp decrease. However, the World Bank cautioned that inflation remains in double digits, posing risks to economic stability, especially with rising fuel costs.

Petrol prices increased by 45% between February and March 2026, while diesel prices nearly doubled. The report noted that Nigeria's external position remains strong, with a current account surplus of 4.8% of GDP and improved foreign reserves.

However, the fiscal deficit widened to 3.1% of GDP in 2025 from 2.8% in 2024, driven by increased government spending. The World Bank projected modest economic growth of 4.2% from 2026 to 2028, emphasizing the need for structural reforms to improve living conditions and address poverty.