Nigeria’s economy recorded its fastest quarterly growth in a decade at the end of 2024, according to the World Bank.
The country’s GDP rose by 4.6% year-on-year in the fourth quarter (Q4) on the back of stronger fiscal performance, reform momentum and improved macroeconomic indicators.
Speaking during a presentation on Monday, the World Bank’s lead economist for Nigeria, Alex Sienaert, said recent economic reforms helped fuel this growth.
He pointed to positive signs continuing into early 2025, adding that business activity remained strong based on high-frequency indicators.
The World Bank projects Nigeria’s economy will grow by 3.6% in 2025.
Sienaert noted that several bold policy moves by the federal government contributed to the improved outlook and helped increase government revenue and Nigeria’s fiscal position.
According to the World Bank, stronger tax administration and higher remittances bolstered government revenue by 4.5% of GDP in 2024.
While the fiscal deficit narrowed sharply to 3% of GDP, down from 5.4% in 2023. However, the Bank warned that the full financial gains from subsidy reforms are yet to be fully realised.
Nigeria’s foreign reserves have also strengthened to around $37 billion during the quarter under review.
The country’s foreign exchange market has become more stable and market-driven, creating better conditions for reserve accumulation.
Inflation remains a key concern at 23.18% in February 2025 while Food inflation eased to 23.51%, core inflation rose to 24.43%.
Consumer prices rose by 3.90% in March, up from 2.04% in February, reflecting continued pressure on the cost of living.
Sienaert explained that monetary and fiscal discipline will be critical to sustaining economic gains. He said tight monetary policy, combined with consistent reform efforts, will help manage inflation and support long-term growth.
The World Bank is set to publish its full Nigeria Development Update report today in Abuja. The report provides a detailed look at key economic trends, policy developments and reform outcomes in Nigeria.
While challenges remain, the Q4 2024 growth figures show the positive impact of Nigeria’s ongoing economic reforms and could boost investor confidence in the months ahead.
