Nigeria recorded its fastest economic growth in over a decade in 2024, driven by policy reforms and a rebound in key sectors, the World Bank said on Monday, though it warned that inflation and poverty remain significant challenges.
According to the World Bank’s latest Nigeria Development Update report, real Gross Domestic Product (GDP) grew by 4.6 percent year-on-year in the fourth quarter of 2024, pushing the overall growth rate for the year to 3.4 percent — the highest annual growth since 2014, excluding the COVID-19 rebound in 2021–2022.
The Bank attributed the acceleration in growth primarily to a recovery in the oil and gas sector and robust expansion in the tech and financial industries. However, it noted that growth in agriculture — a key employer — remained sluggish at 1.2 percent due to insecurity in the Middle Belt and high input costs.
Looking ahead, the World Bank forecasts a “mildly higher” GDP growth of 3.7 percent in 2025.
Despite these gains, the Bank warned that high inflation remains a drag on household welfare. It projects inflation to average 22.1 percent in 2025, down slightly but still elevated.
“Nigeria has made impressive strides to restore macroeconomic stability,” said Taimur Samad, acting World Bank country director for Nigeria, in a statement accompanying the report.
President Bola Ahmed Tinubu’s administration, which came into power in May 2023, has pursued sweeping economic reforms — including removing fuel subsidies and floating the naira — to address long-standing fiscal imbalances. While praised by international institutions, these measures have triggered a severe cost-of-living crisis for many Nigerians.
The World Bank estimated that nearly half of the population lived in poverty in 2024, as inflation eroded incomes and pushed more people, especially in urban areas, into hardship.
“Labour incomes have not kept up with inflation, depleting the purchasing power of Nigerians. Poverty has deepened and broadened,” the report stated.
The International Monetary Fund (IMF) also noted recently that while Nigeria’s reform agenda is critical, the benefits have yet to reach the average citizen.
The government, meanwhile, insists that the long-term gains of its policies will help stabilise the economy and reduce poverty.
