The World Bank has reaffirmed Nigeria’s status as a Lower-Middle Income Economy (LMIE) in its 2025/2026 country income classification, placing it below conflict-affected Libya and resource-rich Gabon.
While Nigeria remains in the LMIE category, other African nations — including Algeria, Botswana, Equatorial Guinea, Gabon, Libya, Mauritius, and South Africa — are ranked higher among the Upper-Middle Income Economies (UMIEs).
According to the World Bank, for the 2026 fiscal year:
- Low-income economies are those with a Gross National Income (GNI) per capita of $1,135 or less (based on the 2024 World Bank Atlas method).
- Lower-middle income economies fall between $1,136 and $4,495.
- Upper-middle income economies range from $4,496 to $13,935.
- High-income economies have a GNI per capita above $13,935.
The Bank emphasized that these classifications are essential for tracking global development and shaping economic strategies.
“As countries continue to evolve economically, these classifications remain crucial for shaping development policies. Understanding what drives income levels can help guide economic growth, manage inflation, and foster global integration,” it stated.
In addition to income rankings, Nigeria was also listed among countries experiencing fragility and conflict, alongside Yemen, Ukraine, Gaza, West Bank, Sudan, South Sudan, Somalia, Syria, Niger, Burkina Faso, and Afghanistan.
However, Nigeria is not listed among the Heavily Indebted Poor Countries (HIPCs) — a group that includes Rwanda, Ghana, Gambia, and Liberia.
Global Trends in Income Classifications
The World Bank highlighted significant regional shifts over the decades:
- In East Asia and the Pacific, low-income countries dropped from 26% in 1987 to just 3% in 2024.
- Europe and Central Asia had no low-income countries in both 1987 and 2024, with a slight dip in high-income economies from 71% to 69%.
- Latin America and the Caribbean saw low-income countries fall from 2% to zero, while high-income nations rose from 9% to 46%.
- In South Asia, all countries transitioned from low-income in 1987 to either lower- or upper-middle income by 2024.
- Sub-Saharan Africa saw a decrease in low-income countries from 75% to 45%, with Seychelles emerging as the region’s only high-income country.
These changes stem largely from fluctuations in GNI per capita and adjustments in classification thresholds, which are updated annually to reflect inflation and currency shifts — notably this year, a slight drop due to U.S. dollar appreciation against other currencies.
Namibia: The Only Downgraded Country
Namibia was the sole nation to be downgraded in this year’s update — moving from upper-middle income to lower-middle income.
The shift followed a GDP growth slowdown to 3.7% in 2024, down from 4.4% in 2023, and a cooling of inflation from 6.6% to 3.3%.
A key driver of the decline was a steep fall in the mining and quarrying sector, particularly due to weakened global demand for diamonds.
The World Bank’s latest classification underscores the complex dynamics shaping income disparities across regions, and serves as a reminder of the urgent need for structural reforms and inclusive economic policies in nations like Nigeria.
