The World Bank has expressed concerns that Nigeria’s sluggish growth will impede economic progress in the surrounding sub-region. In its analysis of Western and Central Africa’s economic outlook, the institution predicts a rise in regional activity from 3.2 per cent in 2023 to 3.7 per cent in 2024, accelerating to 4.2 per cent between 2025 and 2026.
However, the report highlights Nigeria’s below-average growth as a hindrance to the sub-region’s overall performance. Excluding Nigeria, the sub-region is forecasted to grow by 4.4 per cent in 2024 and 5 per cent in 2025–2026.
The World Bank forecasts growth in Nigeria at 3.3 per cent in 2024 and 3.6 per cent in 2025–2026, as gradual macroeconomic and fiscal reforms begin to yield results. The oil sector is expected to stabilize with increased production and slightly reduced prices.
The report emphasizes the need for structural reforms to stimulate higher growth, projecting average inflation to remain high at 24.8 per cent in 2024 but gradually ease to 15.1 per cent by 2026.
Economic activities in other countries like Côte d’Ivoire are expected to improve, with growth rates of 6.6 per cent in 2024 and 6.5 per cent in 2025–2026. The report suggests that an accommodative monetary policy by the Central Bank of West African States could support private consumption.
In Nigeria, over half of the population is deemed multi-dimensionally poor, with higher rates in rural areas compared to urban areas. The World Bank underscores the struggle of Sub-Saharan Africa to sustain and broaden economic growth, noting its high poverty rates and inequality levels.
Despite efforts, economic expansion in the region remains below the levels seen in the previous decade, with limited impact on poverty reduction.
