Nigeria’s Economy Records Fastest Growth in 10 Years, World Bank Says

Nigeria’s economy experienced its fastest pace of growth in ten years in 2024, bolstered by bold reforms and a strong fourth-quarter performance, according to the World Bank.
In a report, the World Bank said, “Real GDP increased by 4.6 per cent year-on-year in Q4 2024, pushing growth for the full year 2024 to 3.4 per cent, the highest since 2014 (excluding the 2021-2022 COVID-19 rebound).”

Speaking at a presentation in Abuja on Monday, the World Bank’s Lead Economist for Nigeria, Alex Sienaert, said the country’s economy expanded by 4.6% year-on-year in the final quarter of 2024. He also cited high-frequency business indicators pointing to continued momentum into early 2025.

For the full year, the World Bank projects Nigeria’s economy to grow by 3.6%, underpinned by a series of fiscal and monetary reforms initiated by President Bola Tinubu. These include the removal of petrol subsidies, cuts to electricity allowances, and two major devaluations of the naira, all of which have contributed to upward price pressures.

Despite the reform-led gains, inflation remains a critical challenge, as Sienaert cautioned that tight monetary policy and disciplined fiscal policy must be sustained.
He noted that foreign exchange reforms had led to a more unified and market-reflective exchange rate, which has helped the Central Bank of Nigeria rebuild its reserves, now standing at over \$37 billion. “That’s significant because this is the cushion the economy has against external volatility,” Sienaert said.
Nigeria also recorded a marked improvement in its fiscal position. Government revenue increased by 4.5% of GDP in 2024 — a “remarkable achievement”, Sienaert said — driven by improved tax administration, the removal of foreign exchange subsidies, and a rise in remittances.

These gains enabled the government to slash its fiscal deficit to an estimated 3% of GDP in 2024, down from 5.4% in 2023. However, Sienaert warned that the full benefits of fuel subsidy removal were yet to be fully realised.
The World Bank’s outlook reflects a cautiously optimistic view of Nigeria’s economic trajectory, contingent on the government’s ability to rein in inflation and maintain its reform momentum.

Follow us on:

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}