World Bank says Nigeria’s reforms yielding results

The World Bank says Nigeria’s economic reforms are beginning to yield results, with steady growth and improving macroeconomic indicators. In its Nigeria Development Update released on Tuesday, the bank said the country’s GDP grew by 4.0 percent in 2025, following 4.1 percent growth in 2024.

The report said growth was driven mainly by the services sector, including ICT, financial services and real estate, while inflation declined to 15.1 percent in February 2026 from 26.3 percent a year earlier. However, it noted that price pressures remain elevated despite the improvement.

The bank said Nigeria’s external position strengthened, with a current account surplus of 4.8 percent of GDP and external reserves rising to 45.5 billion dollars. It added that the fiscal deficit widened slightly to 3.1 percent of GDP due to increased government spending.

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The World Bank projected growth of about 4.2 percent between 2026 and 2028, but warned the Federal Government against using higher oil revenues to fund subsidies, urging instead that any gains be treated as temporary and used to support vulnerable households.