The World Bank has said Nigeria’s ongoing economic reforms are beginning to yield measurable results, with improved macroeconomic stability, steady growth, and easing inflation recorded over the past year.
However, the institution warned that the gains remain fragile and could be undermined by rising global energy prices, inflationary pressures, and structural weaknesses in the economy.
According to the bank’s latest Nigeria Development Update released on Tuesday, Nigeria’s real Gross Domestic Product grew by 4.0 per cent in 2025, following a 4.1 per cent expansion recorded in 2024.
The report attributed the growth largely to the services sector, which it said remained the key driver of economic expansion.
Sectors such as Information and Communications Technology, financial services, and real estate were specifically highlighted as major contributors to growth.
The bank added that early indicators for 2026 suggest that growth has continued across most sectors, although at a slightly slower pace due to heightened global tensions.
The World Bank noted a significant decline in inflation over the past year, describing it as one of the key outcomes of Nigeria’s reform efforts.
“Inflation fell to 15.1 per cent year-on-year in February 2026, down from 26.3 per cent a year earlier,” the report stated.
It added that food inflation also recorded a sharp decline.
“Food inflation also declined sharply to 12.1 per cent, easing pressure on household incomes, especially for poorer Nigerians,” the World Bank.
Despite this improvement, the institution cautioned that inflation remains in double digits and continues to pose risks to economic stability.
“Inflation has declined substantially, but it remains in double digits and the Middle East conflict is adding renewed pressures,” the bank warned.
