Daily Mentor News

 

In its latest Global Economic Prospects report released in January 2026, the World Bank has significantly upgraded its outlook for Nigeria's economy, projecting a robust 4.4% GDP growth in both 2026 and 2027. This represents the fastest expansion the country has seen in more than ten years and marks a notable improvement from the bank's previous estimate of 3.7% for 2026 (as stated in its June 2025 report).The optimistic forecast is largely driven by ongoing economic reforms, particularly enhancements to the tax system, combined with the continuation of prudent monetary policies. These measures are expected to bolster overall economic activity, enhance investor confidence, and contribute to further declines in inflation.According to the World Bank, growth will be supported by several key factors:

• Sustained expansion in the services sector, especially in areas like finance and information and communication technology.
• A strong rebound in agricultural output.
• Modest acceleration in non-oil industrial activities.

Additionally, increased oil production is anticipated to help counterbalance softer global oil prices, thereby supporting fiscal revenues and improving the external balance.This positive revision reflects the early positive impacts of Nigeria's reform efforts, which are strengthening macroeconomic stability and creating a more favorable environment for sustained growth.Recent data from the National Bureau of Statistics further underscores the improving trajectory, with Nigeria's real GDP growing by 3.98% year-on-year in the third quarter of 2025.The World Bank emphasizes that these reforms signal a commitment to building a more resilient and diversified economy, paving the way for stronger performance in the coming years despite global challenges such as trade uncertainties and commodity price fluctuations.This upgraded projection offers encouraging news for Nigeria as it continues to implement policies aimed at long-term inclusive growth and stability.