Nigeria’s economy experienced its fastest growth in a decade last year, according to the latest report from the World Bank, which highlighted the significant strides made by the government in economic reforms. Despite the positive growth, inflation remains a persistent challenge, the Bank warned.

The World Bank reported that Nigeria’s real GDP surged by 4.6% in the fourth quarter of 2024, contributing to an overall growth rate of 3.4% for the entire year – the highest since 2014, excluding the recovery rebound following the COVID-19 pandemic. This represents a remarkable turnaround for Africa’s most populous nation, which has faced significant economic challenges in recent years.

The impressive growth in Nigeria’s GDP was primarily attributed to the continued recovery of the oil and gas sector, coupled with robust expansion in the technology and finance industries. However, the agriculture sector saw slower growth, expanding by just 1.2% in 2024, as insecurity in the country’s central Middle Belt and rising input costs continued to hamper productivity.

Looking ahead, the World Bank forecasts a modest increase in Nigeria’s economic growth, projecting an expansion rate of 3.7% for 2025.

“Nigeria has made impressive strides to restore macroeconomic stability,” Taimur Samad, Acting World Bank Country Director for Nigeria, said in a statement. “These efforts, spearheaded by President Bola Ahmed Tinubu, are crucial for the country’s future economic health.”

President Tinubu’s administration, which assumed office in May 2023, has introduced a comprehensive economic reform programme designed to stabilize Nigeria’s public finances. The government and international financial bodies have recognized the importance of these reforms for the long-term prosperity of the nation. However, the implementation of these reforms has come with significant costs for many ordinary Nigerians, who are grappling with the worst cost-of-living crisis in a generation.

The World Bank also highlighted the persistent issue of high inflation, which has remained “sticky” despite recent growth. The Bank’s forecast for 2025 indicates that inflation will average 22.1%, a significant concern for households across the country.

Despite these challenges, the World Bank’s report underscores the positive trajectory Nigeria has embarked on, with a renewed focus on macroeconomic stability and reform implementation.