Services, Reforms Drive Improved Nigeria Growth Outlook — World Bank
By FIDELUS ZWANSON
Growth Outlook and Reform Impact Focus
NIGERIA’S economic prospects have received a major boost after the World Bank revised upward its growth forecast for Africa’s largest economy, projecting the strongest expansion in more than a decade.
In its Global Economic Prospects report for 2026 released on Tuesday, the World Bank said Nigeria’s economy is expected to grow by 4.4 per cent in both 2026 and 2027, up from an estimated 4.2 per cent in 2025. The improved outlook reflects stronger momentum across key sectors of the economy.
According to the report, growth will be driven largely by sustained expansion in the services sector, particularly in finance and information and communication technology (ICT). A rebound in agricultural production and modest gains in non-oil industries are also expected to support overall output.
The World Bank said ongoing economic reforms—including adjustments to the tax system and the continuation of prudent monetary policy—are expected to strengthen investor confidence and contribute to a further easing of inflationary pressures.
Higher crude oil production is also expected to partially offset weaker global oil prices, helping to boost fiscal revenues and improve Nigeria’s external balance.
However, the bank cautioned that Nigeria’s history with fiscal reforms underscores the need for stronger institutions. While fiscal rules were introduced to reduce reliance on oil revenues, weak implementation has limited their long-term effectiveness.
