WED APRIL 08 2026-theGBJournal| The World Bank, in its April 2026 Nigeria Development Update (NDU) released on Tuesday, has projected a cautiously optimistic outlook for Nigeria’s economy, forecasting growth of 4.2 percent between 2026 and 2028.
The projection reflects expectations of continued macroeconomic stabilisation, sustained structural reforms, and increased investment inflows, all of which are expected to support a gradual strengthening of economic activity.
Speaking on the outlook, Fiseha Haile, World Bank’s Lead Economist for Nigeria, noted that while growth prospects remain positive, inflation continues to pose a significant concern.
He explained that although price pressures are expected to ease over time, the pace of decline will likely be slower than earlier projections, underscoring persistent vulnerabilities within the economy.
The inflation outlook is being shaped in part by external developments, particularly the ongoing tensions in the Middle East, which have disrupted global energy markets and heightened cost pressures.
Mathew Verghis, World Bank Country Director for Nigeria also notes that Nigeria has made efforts to stabilize its economy, but welfare gains are still modest. Moreover, the conflict in the Middle East adds pressures.
”Sustaining and deepening macroeconomic stabilization, as well as addressing structural constraints, will be critical to translating reform dividends into faster, more inclusive growth, jobs and improved living standards.”
According to Verghis, investing early in nutrition, health, caregiving, safety and early learning is one of the most powerful ways Nigeria can convert today’s reform gains into higher productivity, better jobs, and lasting poverty reduction.”
Improving early childhood outcomes requires a more integrated approach—bringing together nutrition, health, responsive caregiving, early learning, and children’s living environments, including access to water and sanitation, into a coherent and continuous package of support.
This includes defining a basic package of services from pregnancy to age five, improving targeting and delivery, engaging private sector and community providers, and aligning financing and coordination with measurable outcomes.
Meanwhile, the report notes that while recent bold reforms have strengthened macroeconomic fundamentals, enhancing Nigerians’ productive capabilities will be critical to translating these gains into better living standards and jobs.
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