Nigeria’s Economy Records Fastest Growth in a Decade — World Bank

Nigeria’s economy recorded its strongest growth in nearly ten years in 2024, driven by a robust fourth quarter and improved government finances, according to the World Bank.

Speaking on Monday, the Bank’s lead economist for Nigeria, Alex Sienaert, revealed that the economy expanded by 4.6% year-on-year in Q4 2024. He added that early indicators show continued growth into 2025, although high inflation remains a major concern.

The World Bank is set to release its Nigeria Development Update report today in Abuja. The bi-annual report provides detailed insights into the country’s economic performance and key policy issues.

The recent economic boost follows significant reforms under President Bola Tinubu’s administration, including the removal of fuel subsidies, reduction of electricity support, and currency devaluation. These measures have contributed to rising prices, though inflation has shown signs of easing.

Annual inflation fell to 23.18% in February 2025—the lowest since June 2023—from 24.48% in January. Food inflation also dropped to 23.51%, its lowest since September 2022. However, core inflation rose to 24.43% from 23.01%, and monthly consumer prices jumped by 3.90% in March, up from 2.04% in February.

The World Bank projects a 3.6% growth rate for Nigeria in 2025. Sienaert also highlighted that foreign exchange reforms have led to a more stable and unified market, allowing the central bank to rebuild reserves, which now exceed $37 billion.

Government revenue rose significantly in 2024, reaching 4.5% of GDP—an improvement credited to the end of FX subsidies, better tax collection, and higher remittances. This helped reduce the fiscal deficit to about 3% of GDP, down from 5.4% in 2023. However, Sienaert noted that the full revenue gains from subsidy removal are yet to be fully realized.

He warned that despite fiscal progress, high inflation remains a persistent threat and urged the continuation of tight monetary and fiscal policies to maintain stability.