Nigeria’s Economy Records Fastest Growth In A Decade, Says World Bank.
Nigeria’s economy achieved its strongest growth in a decade in 2024, expanding by 3.4%, according to a World Bank report released on Monday. The surge, driven by robust performances in the oil and gas, technology, and finance sectors, marks the highest growth rate since 2014, excluding the post-COVID rebound in 2021-2022.
The World Bank’s latest Nigeria Development Update (NDU), published in Abuja, revealed that real gross domestic product (GDP) grew by 4.6% year-on-year in the fourth quarter of 2024, propelling the full-year growth to 3.4%. However, the report cautioned that inflation remains a persistent challenge, with projections indicating a decline to an average of 22.1% in 2025.
“Nigeria has made impressive strides to restore macroeconomic stability,” said Taimur Samad, acting World Bank country director for Nigeria. The bank attributed the economic upturn to reforms introduced by President Bola Ahmed Tinubu’s administration, which took office in May 2023. Tinubu’s deep economic reform programme, endorsed by international financial institutions, has been credited with stabilising public finances in Africa’s most populous nation.
Despite the positive GDP figures, the agriculture sector lagged, growing at just 1.2% in 2024. The World Bank cited insecurity in Nigeria’s crop-producing Middle Belt and soaring input costs as key factors hampering agricultural output.
Looking ahead, the bank forecasts a “mildly higher” growth rate of 3.7% for Nigeria’s economy in 2025. However, the report underscored the ongoing cost-of-living crisis, which has hit ordinary Nigerians hard. Tinubu’s reforms, while necessary for long-term stability, have exacerbated economic pressures for many, marking the worst cost-of-living crisis in a generation.
As Nigeria navigates these challenges, the World Bank’s findings highlight both the progress made and the hurdles that remain in achieving inclusive and sustainable economic growth.
