Nigeria must grow its economy at five times its current pace to achieve a $1 trillion GDP by 2030 and tackle its rising poverty levels.
The latest World Bank Development Update praised the country’s recent macroeconomic reforms but emphasized that significantly more progress is needed to reach inclusive and sustained growth.
The Bank’s Lead Economist for Nigeria, Alex Sienaert while presenting the report titled “Building Momentum for Inclusive Growth, said Nigeria must shift its economic strategy toward more job-intensive sectors and broaden safety nets for its vulnerable population.
He cautioned that the public sector alone cannot carry the burden of economic transformation, advocating instead for a stronger role for the private sector with the public sector playing a dual role: providing essential services like infrastructure and human capital, while also enabling a favorable business environment.
“Public resources are limited. Nigeria needs a strategy that allows the public sector to deliver key services and empower private investment, innovation, and growth,” Sienaert said.
The high-profile event drew top government officials and economic leaders, including Finance Minister Wale Edun, Central Bank Governor Olayemi Cardoso, Ministers Bosun Tijani and Abubakar Bagudu, Plateau State Governor Caleb Mutfwang, UAC Foods CEO Oluyemi Oloyede, and World Bank Acting Country Director Taimur Samad.
The report warned that Nigeria’s current economic growth rate of 3.4% is insufficient to meet its ambitions. It urged the government to realign growth by addressing gaps in critical infrastructure—especially electricity and transportation—improving access to finance, and enabling productive sectors like agriculture and manufacturing to thrive.
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Despite notable progress, such as the shrinking of the fiscal deficit from 5.4% of GDP in 2023 to 3.0% in 2024, the World Bank stressed that structural reforms must go deeper and broader to reduce poverty and create sustainable jobs at scale.
The country’s revenue performance has improved significantly, with national revenues rising from ₦16.8 trillion in 2023 (7.2% of GDP) to an estimated ₦31.9 trillion in 2024 (11.5% of GDP), a key factor behind the improved fiscal outlook.
Still, inflation remains a pressing concern. Although projected to fall to an annual average of 22.1% in 2025, driven by a tight monetary policy, it continues to erode purchasing power for millions of Nigerians.
World Bank Acting Country Director Taimur Samad said Nigeria is now better positioned to channel resources into human capital, social safety nets, and infrastructure—provided reform momentum is maintained.
Minister Wale Edun acknowledged the World Bank’s support, reiterating the need for transparency in the oil sector to attract investment and build a sustainable growth framework. “Investment creates jobs. Transparency is key. We must continue the momentum,” Edun emphasized.
CBN Governor Cardoso pledged continued efforts to stabilize the foreign exchange market and bring down inflation and interest rates. He also spotlighted the Central Bank’s commitment to expanding financial inclusion and supporting Nigeria’s vibrant fintech ecosystem.
The report concludes with a clear call to action: Nigeria must embrace a private-sector-led, inclusive, and reform-driven growth strategy to realize its trillion-dollar dream and lift millions out of poverty.
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