The World Bank has projected that Nigeria, along with other sub-Saharan African economies, is set to achieve a stronger growth rate of 3.8% in 2025, driven by stable inflation and supportive policy measures, the institution announced on Monday.
According to the World Bank’s latest regional economic outlook, the forecast represents an improvement from previous years, reflecting a gradual recovery across the region. Economists say this growth trajectory is supported by declining inflation rates, improved government fiscal management, and targeted interventions by monetary authorities.
“In 2025, we expect sub-Saharan Africa’s economies, including Nigeria, to benefit from stable prices and easing policy measures, which will help sustain economic momentum,” the World Bank report stated. The bank highlighted that policy stability has encouraged private sector activity, foreign investment, and domestic consumption, all contributing to the projected growth.
For Nigeria specifically, the World Bank pointed to the country’s strong performance in the non-oil sector, particularly agriculture, telecommunications, and services, as key drivers of economic expansion. Government reforms aimed at improving the business climate, boosting infrastructure development, and encouraging foreign direct investment are also expected to have a positive impact.
However, the report cautioned that challenges remain. The region still faces risks from external shocks, including fluctuating global commodity prices, currency volatility, and potential disruptions in global trade. Additionally, climate-related risks such as droughts and floods could affect agricultural output, which is a major contributor to GDP in several African countries.
Despite these challenges, the World Bank noted that macroeconomic stability in Nigeria has improved markedly in recent months. Inflation has shown signs of moderation, while the Central Bank’s monetary policies have helped maintain relative currency stability. “The combination of stable macroeconomic conditions and proactive policy measures provides a conducive environment for sustained growth,” the report added.
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Regional growth is expected to be broad-based, with countries like Ghana, Kenya, and Ethiopia also showing stronger-than-expected expansions. The World Bank emphasized that maintaining fiscal discipline and continuing structural reforms will be crucial to ensuring that the growth is both sustainable and inclusive.
The report concluded by urging African governments to leverage the current momentum by investing in infrastructure, education, and health, while fostering an environment that attracts domestic and international investors. “Sustaining growth in the medium term requires careful management of resources, strategic investments, and policies that encourage economic diversification,” it stated.
As Nigeria and its neighbors navigate global economic uncertainties, the World Bank’s outlook provides cautious optimism that the region can achieve meaningful progress this year, laying the groundwork for more robust and inclusive development in the years ahead.