World Bank Urges Nigeria to Save Oil Windfall for Future

The World Bank has urged Nigeria to save its oil windfall for future needs and to rebuild its fiscal buffers in light of ongoing conflicts in the Middle East, which have driven oil prices above $100 per barrel. The report emphasizes the importance of fiscal discipline and managing oil revenues to reduce inflationary pressures.

It calls for the Nigerian government to restore competitive supply of premium motor spirit (petrol) by reopening imports and reducing pump prices. The report acknowledges Nigeria's progress in restoring macroeconomic stability, with a slight widening of the fiscal deficit to 3.1% of GDP in 2025, while the debt-to-GDP ratio has fallen for the first time in a decade.

It also notes that Nigeria's economy grew by 4.0% in 2025, driven mainly by the services sector. Despite these improvements, household incomes have not fully recovered, and poverty remains high, highlighting the need for further measures to lower inflation.