The World Bank has raised its 2026 growth forecast for Nigeria to 4.3 per cent from 4.0% in 2025, citing improving macroeconomic stability, recovering investor confidence and a gradual revival in private investment.

The Bank however, warned that rising government spending ahead of the 2027 elections could weaken the momentum of recent economic reforms.

The projection was contained in the bank’s October 2026 Africa Economic Update, titled Building AI Readiness, released on Tuesday. The report also raised Nigeria’s growth forecast for 2027 and 2028 to 4.4 per cent annually, compared with an estimated 4.0 per cent expansion in 2025.

The update attributed the stronger outlook to improving macroeconomic stability, strengthening investor confidence and a gradual recovery in private investment.

The lender expects Nigeria’s economic expansion to strengthen over the next three years as the impact of economic reforms and improved macroeconomic management becomes more evident.

“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’s chief economist for Africa, Andrew Dabalen, said Sub-Saharan Africa continued to demonstrate resilience, with growth forecasts upgraded for nearly three-quarters of countries in the region.

The World Bank’s revised forecast follows stronger recent GDP performance in Nigeria, with the economy expanding at a faster pace in the second quarter of 2026.

The National Bureau of Statistics (NBS) reported Nigeria’s real GDP grew by 4.43% year-on-year in Q2 2026, compared with 4.23% in the corresponding quarter of 2025.

The 4.43% expansion represented an improvement from the 4.23% growth recorded in Q2 2025.

The latest performance provides a recent domestic indicator of the economic expansion reflected in the World Bank’s revised outlook.

The World Bank expects growth to continue strengthening beyond 2026, reaching 4.4% annually in 2027 and 2028.

The post World Bank forecasts 4.3% growth rate for Nigeria in 2026 appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.