The World Bank has projected a 3.6% economic growth rate for Nigeria in 2025 despite global trade uncertainties.
This projection, revealed in the bank’s latest Global Economic Prospects Report released on Tuesday, places its forecast above that of the International Monetary Fund (IMF)
Despite revising down growth forecasts for nearly 70% of economies globally, the World Bank has maintained its earlier 3.6% projection for Nigeria.
This stability is attributed to monetary policy tightening, aimed at addressing currency depreciation and inflation, which is expected to drive economic expansion.
“Growth in Nigeria is forecast to strengthen to 3.6% and to an average of 3.8% in 2026-27. Following monetary policy tightening in 2024 to address rapid currency depreciation, inflation is projected to decline gradually.
“Domestic reforms have helped spur investment, supporting growth in the services sector, especially in financial services and information and communication technology.”
The World Bank further predicts an improvement in Nigeria’s growth rate, reaching 3.7% and 3.8% in 2026 and 2027 respectively.
Global, the bank has lowered its growth forecast to 2.3% in 2025, a 0.4% reduction from its January prediction. Despite these cuts in global growth, the World Bank does not foresee the global economy entering a recession.
It also highlighted that sub-Saharan African countries face minimal exposure to any escalating trade tensions between the United States and China, as the region exports relatively few raw commodity goods to the U.S.
This 3.6% growth forecast from the World Bank is a divergence from the IMF’s revised projection for Nigeria, which stands at 3.0% for 2025. This difference reflects varying assessments of the country’s economic prospects.
While the IMF’s decision was reached amidst escalating global trade tensions and uncertainty in the crude oil sector, Nigeria’s major source of revenue, the World Bank looked at reforms and monetary tightening policies driving positive growth in the country.
