The warning was contained in its latest Africa Economic Update, which projected that Nigeria’s economic growth would accelerate from 4.0 per cent in 2025 to 4.3 per cent in 2026, before rising further to an average of 4.4 per cent in 2027 and 2028.

The World Bank attributed the projected improvement to strengthening macroeconomic stability, improved investor confidence and a gradual recovery in private investment.

It said: “Economic activity in Nigeria is projected to strengthen from 4.0 percent in 2025 to 4.3 percent in 2026, before edging up to 4.4 percent annually in 2027–28, supported by improving macroeconomic stability, strengthening investor confidence, and a gradual recovery in private investment.

“Growth continues to be driven primarily by the service sector, particularly financial services, ICT, and real estate, which have benefited from ongoing digitalization and resilient domestic demand.

Agricultural activity is expected to recover in 2026, while growth in the industrial sector is projected to moderate, reflecting softer momentum in oil production and manufacturing.” On inflation, the World Bank projected a substantial decline from 23.0 per cent in 2025 to 15.7 per cent in 2026, with the rate expected to fall further to 12.2 per cent by 2028.