Market News
Nigeria needs five-fold growth to hit $1trn economy by 2030 – World Bank - BUSINESSDAY
Nigeria’s path to a $1 trillion economy is not out of reach, but it demands urgency. Africa’s most populous nation must grow five times faster than its current pace to hit that target within the next five years, according to the World Bank.
The Washington-based lender revealed this at the launch of the May 2025 Nigeria Development Update (NDU), where it said while the various macroeconomic reforms embarked by the authorities have placed the country at a better pedestal, they are not on their own sufficient to effect sustained growth.
“Macroeconomic reforms are necessary but insufficient on their own to achieve fast, sustained, and inclusive growth,” said Alex Sienaert, lead economist of the World Bank in Nigeria.
Nigeria recorded its strongest recovery in three years in terms of gross domestic product in the fourth quarter of last year, growing by 3.84 percent spawned by the services sector.
For 2024, Africa’s most populous nation’ annual GDP growth stood at 3.40 percent, up from 2.74 percent in 2023, fastest non-COVID growth since 2015.
But the global economic upsides are threatening the ambitious GDP growth Nigeria eyes. In spite of this uncertainty, a recent report by the Wold Bank sees the country’s economy increasing from 3.4 percent in 2024 to 3.6 percent in 2025, and slightly rising to 3.8 percent in 2026–2027.
However, the International Monetary Fund recently cut Nigeria’s 2025 economic growth forecast downward to 3.0 percent from the earlier projection of 3.4 percent in 2024, citing weakening oil supply and escalating global trade tensions.
The two projections are however largely lower than Nigeria’s ambitious projected annual GDP growth of 4.6 percent outlined in the 2025 budget.
To foster growth, the World Bank proposed a dual-pillar strategy: sustained macro policy by the public sector and large-scale private sector investment supported by competition reforms and improved infrastructure.
