The African Development Bank (AfDB) has projected that Nigeria’s economic growth will slow to 3.7 percent in 2027 due to expected declines in global oil prices and reduced foreign revenue inflows, according to the 2026 African Economic Outlook released on Thursday during the bank’s annual meetings in Brazzaville, Congo.
The AfDB stated that growth in Nigeria is expected to rise marginally from an estimated 4.0 percent in 2025 to 4.1 percent in 2026, supported by higher oil prices and production, expansion in the services sector, and increased public investment in electricity, transport, and logistics. However, in 2027, growth is projected to decelerate to 3.7 percent as global oil prices ease, leading to lower external revenue.
The report also warned that achieving sustained and inclusive growth across Africa requires a major increase in investment and stronger domestic resource mobilisation. It stated that Africa must achieve an annual growth of 7 percent or higher over the decades to create large-scale employment and accelerate poverty reduction. According to the report, the continent faces an annual development financing gap exceeding $1.3 trillion needed to meet the Sustainable Development Goals.
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The bank said that with appropriate reforms, Africa could unlock up to $1.43 trillion in additional annual financing, surpassing its estimated development financing gap. Sidi Ould Tah, president of the AfDB, said Africa’s challenge is not just closing financing gaps but transforming financing systems to mobilise capital at scale, deploy it efficiently, and strengthen financial agency.
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