Nigeria’s economy expanded at its quickest pace in ten years during 2024, according to a World Bank report released Monday, though the institution cautioned that high inflation continues to burden citizens.
The report, published in Abuja, revealed that Nigeria’s real GDP grew by 4.6 percent year-on-year in the fourth quarter of 2024, bringing full-year growth to 3.4 per cent.
“Real GDP increased by 4.6 per cent year-on-year in Q4 2024, pushing growth for the full year 2024 to 3.4 percent, the highest since 2014 (excluding the 2021-2022 COVID-19 rebound),” the World Bank stated.
The economic acceleration was primarily driven by a resurgence in oil and gas production alongside robust expansion in the technology and financial services sectors. However, agricultural growth lagged at just 1.2 per cent in 2024, hampered by security challenges in the Middle Belt farming regions and rising production costs.
Looking ahead, the World Bank projects Nigeria’s economy will grow at a “mildly higher” rate of 3.7 per cent in 2025. Inflation, while remaining “high and sticky,” is expected to moderate to an average of 22.1 per cent this year, according to the latest Nigeria Development Update.
“Nigeria has made impressive strides to restore macroeconomic stability,” said Taimur Samad, acting World Bank country director for Nigeria.
The economic turnaround follows sweeping reforms initiated by President Bola Ahmed Tinubu after taking office in May 2023. These measures, endorsed by international financial institutions, aimed to stabilize public finances in Africa’s most populous nation.
However, the reforms have come at significant cost to ordinary Nigerians, who continue to grapple with the worst cost-of-living crisis in decades. The removal of fuel subsidies and currency devaluation have dramatically increased prices for food, transportation and other essentials, squeezing household budgets across the country.
The World Bank acknowledged these challenges while emphasizing the importance of maintaining the reform trajectory to achieve long-term economic stability and growth. The report suggests that sustained policy implementation could position Nigeria for more inclusive economic expansion in coming years.
Key Economic Indicators:
– 2024 GDP Growth: 3.4% (Highest since 2014)
– Q4 2024 Growth: 4.6%
– 2025 Growth Forecast: 3.7%
– 2025 Inflation Projection: 22.1%
– Agricultural Growth 2024: 1.2%
The mixed economic picture highlights both Nigeria’s recovery potential and the ongoing difficulties facing its population. As growth returns to key sectors, policymakers now face the dual challenge of sustaining macroeconomic reforms while mitigating their impact on vulnerable citizens.
