Nigeria's economy experienced its fastest growth in nearly ten years in 2024, according to a new World Bank report released on Monday. The growth was largely driven by a strong performance in the fourth quarter and an improved fiscal outlook. However, the World Bank warned that persistently high inflation remains a significant concern.
Key reforms implemented by President Bola Tinubu - including the removal of costly petrol subsidies, cuts to electricity allowances, and two devaluations of the naira - have added to inflationary pressures but also laid the groundwork for structural transformation.
During a presentation in Abuja, the World Bank's Lead Economist for Nigeria, Alex Sienaert, stated that the economy grew by 4.6 year-on-year in the fourth quarter of 2024. He also noted signs of continued expansion into early 2025, citing high-frequency business indicators.
The World Bank projects 3.6 GDP growth for Nigeria in 2025.
According to Sienaert, Nigeria's foreign exchange reforms have led to "a market-reflective, unified and stable exchange rate," which has enabled the Central Bank to rebuild its official reserves, now surpassing 37 billion. Thats significant because this is the cushion the economy has against external volatility, he said.