The World Bank has raised its forecast for Nigeria’s economic growth in 2026 to 4.3 percent, citing improving macroeconomic stability, stronger investor confidence and a gradual recovery in private investment.
The revised projection was contained in the World Bank’s October 2026 Africa Economic Update, released on Tuesday.
The Washington-based institution also projected that Nigeria’s economy would expand by 4.4 percent annually in 2027 and 2028.
“Economic activity in Nigeria is projected to strengthen from 4.0 percent in 2025 to 4.3 percent in 2026, before edging up to 4.4 percent annually in 2027–28, supported by improving macroeconomic stability, strengthening investor confidence, and a gradual recovery in private investment,” the World Bank said.
The latest forecast follows Nigeria’s real gross domestic product (GDP) growth of 4.43 percent year-on-year in the second quarter of 2026, according to data from the National Bureau of Statistics (NBS).
The World Bank said Nigeria was among the African countries whose growth outlook was upgraded, reflecting the impact of economic reforms and improved economic management.
It also raised its growth forecast for sub-Saharan Africa to 4.3 percent in 2026, up from its previous estimate of 4.1 percent.
Andrew Dabalen, World Bank Chief Economist for Africa, said the region had demonstrated resilience despite challenging global conditions, including higher energy prices linked to disruptions arising from the conflict in Iran.
However, the World Bank cautioned that stronger economic growth has yet to translate sufficiently into poverty reduction, with per-capita income growth continuing to lag behind overall economic expansion across the region.
For Nigeria, the bank said the current pace of growth remains insufficient to generate enough productive employment opportunities and significantly reduce poverty.
It added that poverty reduction would likely remain constrained by elevated fuel prices associated with the conflict in the Middle East, which continue to place a disproportionate burden on low-income households.
The World Bank said sustaining economic reforms, attracting more private investment, improving infrastructure, developing human capital and raising productivity would be critical to converting macroeconomic stability into better living standards.
The institution also urged African governments to embrace artificial intelligence (AI) and other digital technologies to boost productivity and create jobs.
It said African countries would need to maximise the opportunities presented by emerging technologies while addressing infrastructure gaps and shortages in digital and technical skills.