World Bank Says Nigeria’s Economy Will Grow Steadily for 3 Years

The World Bank has offered a rare glimmer of good news for Nigeria, predicting that the country’s economy will experience steady growth over the next three years. According to the Bank’s Global Economic Prospects report for June, Nigeria’s GDP is projected to rise by 3.6% in 2025, 3.7% in 2026, and 3.8% in 2027.

This positive forecast stands out at a time when global economic projections are being cut across the board. In fact, the World Bank downgraded its global growth forecast for 2025 to just 2.3%, citing rising trade tensions, high tariffs, and growing uncertainty as major obstacles.

A brighter outlook for Nigeria amid a sluggish global economy

While the world’s largest economies like the U.S., China, and much of Europe are facing slower growth, Nigeria appears to be heading in the opposite direction. 

The country’s steady economic rise is being driven by relatively stable inflation, potential improvements in trade relationships, and optimism around investment and consumption, especially if monetary conditions ease as expected.

Sub-Saharan Africa, the region Nigeria leads in terms of population and economic size, is also projected to perform better than many other parts of the developing world. The region as a whole is expected to grow by 3.7% in 2025 and average 4.2% between 2026 and 2027.

Still, even with this projected growth, the region is not expected to reach its long-term potential. Extreme poverty remains a stubborn challenge, and economic gains may not be enough to drastically change living conditions for millions of people.

Global pressures persist

Globally, things are not as bright. The World Bank notes that trade growth is slowing significantly down to a predicted 1.8% in 2025 from 3.4% in 2024. The 2000s saw average global trade growth of 5.9%, showing just how much momentum the world economy has lost.

Inflation is also expected to stay above pre-COVID levels, with a 2.9% global inflation rate projected for 2025. The Bank warned that if the United States were to raise tariffs further and if other countries respond in kind global growth could take another hit.

Despite these pressures, Nigeria’s relatively strong economic outlook is a sign that some developing economies can still find room to grow. But the World Bank is clear: this progress is fragile. A downturn in global commodity demand or worsening conflicts in the region could easily knock these projections off course.

Moving forward – Reform and resilience

Experts at the World Bank suggest that for countries like Nigeria to stay on track, continued reform is crucial. This means smarter fiscal policies, stronger regional trade partnerships, and efforts to attract sustainable investment.

Ayhan Kose, one of the Bank’s top economists, noted that while emerging markets have benefitted from past trade integration, they are now the most vulnerable in a fragmented global economy. 

He urged countries to “redouble efforts” to build resilience and deepen ties with new economic partners.