Nigeria’s economic outlook has received a significant boost as the World Bank raised its growth projection for the country in 2026 to 4.4%, reflecting stronger momentum in key sectors and improving macroeconomic conditions.
The new forecast represents an upward revision from the 3.7% estimate issued in mid-2025 and brings the World Bank’s outlook in line with the Central Bank of Nigeria’s projection of 4.49% for the same period.
The revised figures were published in the World Bank’s Global Economic Prospects 2026 report released on Tuesday, January 13, 2026.
The multilateral lender also adjusted Nigeria’s 2027 growth forecast upwards to 4.4%, from an earlier estimate of 3.8%, while noting that the country’s economy likely expanded by 4.2% in 2025, outperforming previous expectations.
Brandspur Banking News Desk reports that the World Bank’s improved outlook is driven by stronger domestic demand, easing inflation pressures, stabilising exchange rates, and gradual recovery in trade and investment flows across the region.
On the global front, the institution revised its 2026 world growth forecast to 2.6%, up from 2.4%, and lifted its 2025 estimate to 2.7%, citing better-than-expected performance in major economies, particularly the United States.
However, the Bank cautioned that while the global economy is showing resilience, growth remains uneven and concentrated in advanced economies, limiting progress in poverty reduction across developing regions.
The report highlighted that easing monetary conditions and fiscal support measures are expected to cushion the impact of slowing trade momentum in 2026, with global growth projected to strengthen further in 2027 as policy uncertainties ease.
World Bank Group Chief Economist, Indermit Gill, warned that despite signs of resilience, the global economy is losing its capacity to generate strong, sustainable growth, noting that public and private debt levels are now at historic highs.
He urged governments to prioritise private sector investment, expand trade, invest in education and technology, and rein in excessive public spending to avoid prolonged stagnation and rising unemployment.
In Sub-Saharan Africa, growth is projected to rise to 4.3% in 2026 and 4.5% in 2027, supported by improving commodity prices, stronger trade flows, and recovering domestic demand.
Developing economies are expected to grow at 4% in 2026 before edging up to 4.1% in 2027, while low-income countries are forecast to post stronger average growth of 5.6% over the same period.
Despite these gains, the World Bank warned that per capita income growth in developing countries remains slow, and the income gap with advanced economies is unlikely to narrow significantly in the near term.
Ayhan Kose, Director of the World Bank’s Prospects Group, noted that public debt in emerging and developing economies is at its highest level in over five decades, stressing the need for credible fiscal reforms and stronger budget discipline.
He added that well-designed fiscal rules can help stabilise debt, rebuild policy buffers, and improve governments’ ability to respond to economic shocks.
