WED JUNE 11 2025-theGBJournal| The World Bank projects that growth in Nigeria will strengthen to 3.6% in 2025 and to an average of 3.8% in 2026-27.
The world also forecasts inflation to decline gradually, following monetary policy tightening in 2024 aimed at addressing rapid currency depreciation.
The big lender said domestic reforms have helped spur investment, supporting growth in the services sector, especially in financial services and information and communication technology.
It said services activity will continue to be the main driver of growth, while the industrial sector will remain constrained by subdued crude oil production as last year’s slight rebound wanes.
Growth rose to 3.4 percent in 2024 in Nigeria, primarily driven by financial and telecommunication services, a recovery in the transportation sector, and a slight rebound in oil production.
In response to high inflation, the Central Bank of Nigeria (CBN) raised its policy rate six times last year.
Although inflation has cooled somewhat in recent months, it remains elevated relative to the central bank target and pre-pandemic trends.
Nigeria’s fiscal position strengthened last year owing to a surge in revenues driven by the elimination of the implicit foreign exchange subsidy, ongoing improvements in revenue administration, increased revenues at the state level, and higher remittances from government-owned enterprises.
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