The World Bank has upgraded Nigeria’s economic outlook, citing improving macroeconomic management and reforms as growth strengthens across much of sub-Saharan Africa. It, however, warned that growth remained too weak to generate sufficient productive employment and significantly reduce poverty.

The bank projected Nigeria’s economy to grow by an average of about 4.4 per cent between 2026 and 2028. It urged the country to translate macroeconomic stabilisation into improved household welfare through stronger private investment, productivity, infrastructure, human capital and social protection.

According to global financial organisation, Nigeria is among nearly three-quarters of African economies whose growth forecasts had been revised upward in its latest Africa Economic Update. It listed Nigeria alongside Angola, Ethiopia and Zambia among countries showing stronger economic performance.

“These gains reflect years of reforms and improved economic management,” said Andrew Dabalen, World Bank chief economist for Africa. “The next challenge is turning growth into more jobs and better opportunities.”

Sub-Saharan Africa’s economy is now projected to expand by 4.3 per cent in 2026, up from 4.1 per cent in 2025. The World Bank attributed the improvement to stronger domestic demand, greater macroeconomic resilience and investments associated with energy transition and digital technologies.

It noted that geopolitical tensions, tighter financial conditions, natural disasters, disease outbreaks and insecurity continued to threaten the recovery. The bank added that growth remained insufficient to dramatically reduce extreme poverty or create enough jobs for Africa’s rapidly expanding labour force.

The bank said AI adoption remained at an early stage across most of the continent but was concentrated particularly in Nigeria, Kenya and South Africa and urged governments to invest in reliable electricity, affordable internet access, digital skills, computing infrastructure and effective regulation. 

Nigeria’s macroeconomic performance improved further in 2026, with real GDP expanding by 4.2 per cent in the first half of the year and the bank noted that stronger agriculture and services had supported growth, while foreign reserves and the external position had also improved.