The World Bank has affirmed that Nigeria’s economic growth remains on track in the first half of 2026, despite the ongoing conflict in Iran and surging global energy prices.
The disclosure was made by the Bank’s Lead Economist for Nigeria, Fiseha Haile, during a presentation in Abuja on Tuesday. He highlighted that while overall business activity has remained stable, rising fuel costs and persistent inflation could erode household incomes and slow poverty reduction efforts.
“Overall business activity has been expanding over the past few months, suggesting the impact on growth has been relatively contained. But the shock is still being felt through higher inflation,” Haile said. He added that elevated inflation, particularly from rising fuel costs, poses risks to income levels and poverty reduction initiatives.
The World Bank retained Nigeria’s economic growth forecast for 2027 at 4.4% in January and upgraded the 2026 estimate to 4.4%, up from 3.7% projected in its June 2025 Global Economic Prospects report.
Sub-Saharan Africa is also expected to see growth strengthen to 4.3% in 2026, supported by domestic economic reforms, resilient investment, and easing inflation across the region.
The World Bank’s assessment underscores Nigeria’s economic resilience amid external shocks, while cautioning that inflationary pressures could potentially offset some of the gains achieved through ongoing reforms by the Federal Government.
