The World Bank has upgraded Nigeria’s economic outlook, citing improved macroeconomic management and ongoing reforms as growth strengthens across much of sub-Saharan Africa.
Nigeria was among nearly three-quarters of African economies whose growth forecasts were revised upward in the World Bank’s latest Africa Economic Update.
The Bank listed Nigeria alongside Angola, Ethiopia and Zambia as countries recording stronger economic performance.
“These gains reflect years of reforms and improved economic management,” Andrew Dabalen, World Bank Chief Economist for Africa, said.
Dabalen, however, warned that stronger economic growth must translate into more jobs and improved living standards.
“The next challenge is turning growth into more jobs and better opportunities,” he said.
The World Bank projected that sub-Saharan Africa’s economy would expand by 4.3 percent in 2026, up from 4.1 percent in 2025.
It attributed the improved outlook to stronger domestic demand, increased macroeconomic resilience and investments linked to the energy transition and digital technologies.
The institution, however, identified geopolitical tensions, tighter financial conditions, natural disasters, disease outbreaks and insecurity as major risks to the region’s recovery.
It warned that despite the improved growth outlook, the pace remained insufficient to significantly reduce extreme poverty or create enough jobs for Africa’s rapidly expanding labour force.
The report also identified Nigeria as one of Africa’s emerging centers of artificial intelligence activity.
According to the Bank, AI adoption remains at an early stage across most African countries but is increasingly concentrated in Nigeria, Kenya and South Africa.
It urged governments to prioritize reliable electricity, affordable internet access, digital skills, computing infrastructure and effective regulation to support wider AI adoption.
The Bank said affordable, locally adapted AI applications could transform key sectors, including agriculture, healthcare, education, finance, logistics and public administration.
The World Bank said Nigeria’s macroeconomic performance improved further in 2026, with real Gross Domestic Product (GDP) expanding by 4.2 percent in the first half of the year.
It attributed the growth largely to stronger performance in the agriculture and services sectors, while noting improvements in the country’s foreign reserves and external position.
Despite the gains, the Bank warned that economic expansion remained too weak to generate sufficient productive employment and significantly reduce poverty.
It currently projects Nigeria’s economy to grow by an average of about 4.4 percent between 2026 and 2028.
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The institution said the next priority for Nigeria should be to translate macroeconomic stabilization into improved household welfare through increased private investment, higher productivity, better infrastructure, stronger human capital and expanded social protection.
The Washington-based institution stressed that Africa’s policy challenge was no longer simply achieving higher growth figures, but ensuring that economic expansion generated quality jobs and better opportunities for the continent’s growing young population.
