Nigeria’s economy posted its strongest quarterly growth in ten years at the close of 2024, according to the World Bank.
The country’s GDP grew by 4.6% year-on-year in the fourth quarter (Q4), driven by stronger fiscal performance, sustained reform efforts, and improved macroeconomic indicators.
During a presentation on Monday, Alex Sienaert, the World Bank’s lead economist for Nigeria, attributed the growth to recent economic reforms, which he said are already yielding results. He added that early indicators suggest continued economic momentum into 2025, with business activity remaining robust.
The World Bank forecasts a 3.6% GDP growth for Nigeria in 2025.
Sienaert emphasized that several bold policy initiatives by the federal government have improved the country’s economic outlook, increased government revenue, and strengthened Nigeria’s fiscal position.
According to the World Bank, government revenue rose by 4.5% of GDP in 2024, supported by more efficient tax administration and higher remittance inflows. The fiscal deficit also narrowed significantly to 3% of GDP, down from 5.4% in 2023. However, the Bank cautioned that the full fiscal benefits of subsidy reforms are yet to be fully realised.
Foreign reserves rose to around $37 billion in the last quarter of 2024, supported by a more stable and market-driven foreign exchange regime, which has created a more favorable environment for reserve accumulation.
Despite these gains, inflation remains a major concern. Headline inflation stood at 23.18% in February 2025. While food inflation slightly moderated to 23.51%, core inflation increased to 24.43%. Consumer prices surged by 3.90% in March, up from 2.04% in February, signaling ongoing cost-of-living pressures.
Sienaert stressed that maintaining fiscal and monetary discipline will be essential to sustaining the current momentum. He noted that tight monetary policy, coupled with consistent reforms, will be key to managing inflation and driving long-term growth.
The World Bank will release its full Nigeria Development Update report today in Abuja, offering a comprehensive analysis of the country’s economic trends, reforms, and policy impacts.
While significant challenges remain, the Q4 2024 GDP growth figures highlight the positive impact of ongoing reforms and may help boost investor confidence in the months ahead.
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