The World Bank has upgraded Nigeria’s economic growth forecast for 2026 to 4.3 per cent, from 4.0 per cent projected for 2025, with the economy expected to expand by 4.4 per cent annually in 2027 and 2028.
The World Bank in its October 2026 Africa Economic Update released on Tuesday attributed the stronger outlook to improving macroeconomic stability, strengthening investor confidence and a gradual recovery in private investment.
Nigeria was listed alongside Zambia, Ethiopia and Angola as countries whose growth forecasts were upgraded, after series of economic reforms improved economic management.
“Economic activity in Nigeria is projected to strengthen from 4.0 percent in 2025 to 4.3 percent in 2026, before edging up to 4.4 percent annually in 2027–28, supported by improving macroeconomic stability, strengthening investor confidence, and a gradual recovery in private investment,” the World Bank stated.
The World Bank also upgraded its growth outlook for sub-Saharan Africa putting its prospects for the region’s growth at 4.3 per cent in 2026 from 4.1 per cent which it projected in April.
According to the lender, growth forecasts were upgraded for nearly three-quarters of countries in the region, reflecting stronger-than-expected economic performance.
World Bank’s Chief Economist for Africa, Andrew Dabalen, commenting said, “economic activity in Sub-Saharan Africa continues to demonstrate remarkable resilience, with growth forecasts upgraded for nearly three-quarters of countries in the region.”
The World Bank said the regional economy had remained resilient despite a difficult global environment, including higher energy prices linked to the impact of the Iran war on supply chains.
However, it warned that significant risks remained, including a prolonged Middle East conflict, the El Niño weather phenomenon, high interest rates in advanced economies and elevated debt servicing costs.
It said national debt levels in the region had stabilised, with the debt-to-GDP ratio at about 57 per cent, although about half of the countries were either in default or struggling to service their debts.
The World Bank also cautioned that faster economic growth had yet to translate into significant poverty reduction across the continent, noting that per capita income growth was expected to rise to only 1.8 per cent this year from 1.6 per cent last year.
“The next challenge is turning growth into more jobs and better opportunities,” Dabalen said.
He urged African governments to increase investments in artificial intelligence (AI) to boost productivity, economic growth and job creation.
Dabalen said while Africa lacked the infrastructure and capital to compete with larger economies in AI, countries could benefit from practical, low-cost applications using affordable devices.
He cited AI applications that could support student learning, help farmers detect and manage livestock diseases, and automate tasks such as accounting for small businesses.
He also identified shared data centres and stronger data protection laws as measures that could accelerate AI adoption across the continent.