The World Bank has increased its forecast for Nigeria’s economic growth in 2026 to 4.3 percent.
The Washington-based institution disclosed the revised projection in its October 2026 Africa Economic Update released on Tuesday.
It also expects Nigeria’s economy to 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 financial institution said.
The latest forecast follows a 4.43 percent year-on-year expansion in Nigeria’s real gross domestic product (GDP) during the second quarter of 2026, based on 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 effects of economic reforms and improved management.
The bank also revised 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 increased energy prices resulting from disruptions linked to the Iran conflict.
However, the institution cautioned that stronger economic growth has not yet translated sufficiently into poverty reduction, with per-capita income growth continuing to trail overall economic expansion across the region.
In Nigeria, the World Bank said the current growth rate remains inadequate to create enough productive employment opportunities and significantly reduce poverty.
“However, the pace of poverty reduction is likely to remain constrained by elevated fuel prices associated with the conflict in the Middle East, which continue to weigh disproportionately on low-income households,” the report added.
The World Bank said maintaining reforms, attracting more private investment, improving infrastructure, developing human capital and increasing productivity would be essential to turn macroeconomic stability into improved living standards.
The bank also encouraged African governments to adopt artificial intelligence (AI) and digital technologies to boost productivity and create jobs, noting that the continent needs to maximise the opportunities presented by emerging technologies while tackling infrastructure and skills shortages.