The World Bank says Nigeria’s economy recorded its fastest growth in nearly a decade in 2024, following a strong fourth quarter and an improved fiscal position. Speaking in Abuja on Monday, the bank’s lead economist for Nigeria, Alex Sienaert, revealed that the economy expanded by 4.6% year-on-year in the final quarter of 2024, with momentum continuing into early 2025.
Despite the growth, Mr Sienaert warned that inflation remains a key concern. Nigeria’s annual inflation rate eased to 23.18% in February 2025, the lowest since June 2023, but core inflation and monthly consumer prices continued to rise. Food inflation dropped to 23.51%, its lowest since September 2022.
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The growth follows major economic reforms under President Bola Tinubu’s administration, including petrol subsidy removal, foreign exchange liberalisation and the devaluation of the naira. These reforms contributed to increased revenue and a lower fiscal deficit, which fell to an estimated 3% of GDP in 2024, down from 5.4% the previous year.
Mr Sienaert noted that Nigeria’s foreign exchange reserves now exceed $37 billion, providing a buffer against external shocks. However, he stressed that sustaining tight monetary policy and fiscal discipline will be critical to maintaining the gains. The World Bank expects Nigeria’s economy to grow by 3.6% in 2025.
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