In a recent report on the economic outlook of Western and Central Africa, the World Bank highlighted concerns over Nigeria’s below-average growth, suggesting it could impede the sub-region’s overall economic performance. The Washington-based lender projected that economic activities in the region would see an increase from 3.2 per cent in 2023 to 3.7 per cent in 2024 and further accelerate to 4.2 per cent in 2025–2026.
The report indicated, “The subregion’s performance will be held back by the lower-than-average growth in Nigeria. Excluding this country, the AFW sub-region is projected to grow by 4.4 per cent in 2024 and 5 per cent in 2025–2026.”
However, despite Nigeria’s sluggish growth, the report outlined optimistic prospects for other parts of the sub-region. Economic activities in the West African Economic and Monetary Union were forecasted to increase by 5.9 per cent in 2024 and 6.2 per cent in 2025, driven by strong performances in Benin, Côte d’Ivoire, Niger, and Senegal.
Regarding Nigeria specifically, the World Bank projected a growth rate of 3.3 per cent in 2024 and 3.6 per cent in 2025–2026 as macroeconomic and fiscal reforms gradually yield results. The stabilization of the oil sector, along with structural reforms, was expected to contribute to this growth, despite challenges such as high inflation rates.
Furthermore, the report emphasized the need for structural reforms to foster higher growth rates. It also highlighted the importance of addressing multidimensional poverty in Nigeria, where over half of the population lacks access to health, education, and living standards.
In a broader context, the World Bank pointed out that Sub-Saharan Africa has been grappling with deepening and lengthening economic growth, with growth rates remaining below those of previous decades. This slow pace of expansion has hindered poverty reduction efforts, with the region facing high levels of extreme poverty and inequality.
Overall, while Nigeria’s slow growth poses challenges for West Africa’s economic performance, the report underscores the importance of implementing reforms and addressing poverty to unlock the region’s full economic potential.
