Market News

ABUJA, Oct. 8, 2026 (Reuters) — Nigeria's economy is expected to grow by an average of 4.4% a year through 2028, with inflation and poverty declining if the government sustains reforms and improves service delivery, the World Bank said on Thursday.

In its latest Nigeria Development Update, the World Bank said reforms including the removal of petrol subsidies and exchange-rate changes had boosted revenues available to state governments, creating scope for higher spending on infrastructure, education and healthcare.

Nigeria's economy grew 4.2% in the first half of 2026, up from 3.9% in 2025, driven mainly by services and agriculture. Inflation is projected to ease to around 12% by 2028, from approximately 15%, the World Bank said.

Taiwo Oyedele, Nigeria's minister of finance and coordinating minister of the economy, said at an event where the report was presented that the reforms had helped stabilise the economy and put it on a path to faster growth.

Oyedele said Nigeria's economy was growing faster than its population, which should help reduce poverty if sustained. He added that the government's focus was on private-sector-led and job-rich growth.

The World Bank said state revenues rose by about 93% in real terms between 2023 and 2025, but urged states to improve spending efficiency and invest more in human capital to raise living standards and reduce poverty.

Reporting by Camillus Eboh; Writing by Chijioke Ohuocha; Editing by Xevi Fontdegloria