The World Bank says that Nigeria’s economy will grow by 3.5 per cent in 2025 and rise slightly to 3.7 per cent in 2026.
According to the latest Global Economic Prospects report, the World Bank reflects a modest recovery for Nigeria amidst persistent economic challenges and global uncertainties.
The report added that Nigeria’s economic growth improved to an estimated 3.3 per cent in 2024, driven primarily by strong activity in the services sector, particularly financial and telecommunication services.
“In Nigeria, growth increased to an estimated 3.3 per cent in 2024, mainly driven by services sector activity, particularly in financial and telecommunication services.
“Macroeconomic and fiscal reforms helped improve business confidence. In response to rising inflation and a weak naira, the central bank tightened monetary policy.
“Meanwhile, the fiscal deficit narrowed due to a surge in revenues driven by the elimination of the implicit foreign exchange subsidy, following the unification of the exchange rate and improved revenue administration,” the report said.
Local media reports quoted the World Bank as saying that Nigeria’s projected growth for 2025 and 2026 would be supported by gradually declining inflation, following monetary tightening measures in 2024.
“This is expected to boost domestic consumption and further support the services sector, which remains the main driver of economic growth,” the report added.
GIK/APA