The World Bank has forecast Nigeria’s economic growth at 4.2% for 2025 and 4.4% for 2027, signaling a positive outlook for Africa’s largest economy over the medium term. This projection marks an optimistic revision upward from previous estimates, reflecting expected improvements in key sectors such as financial services, telecommunications, technology, and transportation.
The forecast is part of the World Bank’s Nigeria Development Update released in October 2025, which highlights sustained macroeconomic reforms, increased investments, and easing inflation pressures as drivers of growth. The bank expects Nigeria’s gross domestic product (GDP) to strengthen as the oil and gas sector gradually recovers, aligning with OPEC+ production quotas, while non-oil sectors continue to expand robustly.
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Despite the positive growth outlook, the World Bank cautions that challenges remain, including persistent high inflation, security concerns, and structural issues in agriculture, particularly due to insecurity in central regions affecting farming productivity. Inflation is anticipated to moderate gradually, easing from above 20% down toward more manageable levels by 2027.
The report underscores the importance of continued reform implementation and improved governance to sustain growth momentum, reduce poverty, and create jobs. It also remarks on the significant potential within Nigeria’s digital economy, which could drive innovation and economic diversification.
This growth forecast contrasts somewhat with the International Monetary Fund’s more cautious outlook, which anticipates slower growth due to weaker oil receipts and structural constraints. However, the World Bank remains bullish on Nigeria’s medium-term prospects, calling for steadfast policy actions to realize this potential.
Sources: World Bank
