Nigeria’s economy grew at its fastest pace in ten years in 2024, according to the World Bank. This growth was attributed to sweeping economic reforms under the administration of President Bola Ahmed Tinubu.
In its latest Nigeria Development Update (NDU), presented Monday in Abuja, the World Bank reported that Nigeria’s real GDP grew by 4.6% in Q4 2024, bringing the full-year growth to 3.4% — the highest since 2014, excluding the COVID-19 rebound years of 2021–2022.
President Bola Tinubu’s ambitious economic reforms — including subsidy removals and currency liberalization — have won praise from international institutions like the World Bank. However, these same reforms have led to surging living costs, stirring frustration among ordinary Nigerians grappling with inflation and stagnant wages.
Despite the hardship, the World Bank acknowledged that the government has “made impressive strides to restore macroeconomic stability.”
According to the World Bank, the recovery in Nigeria’s oil and gas sector, along with robust performance in tech and financial services, were key drivers of the country’s improved GDP figures in 2024.
In contrast, the agriculture sector struggled, expanding by just 1.2%, largely due to insecurity in the Middle Belt and the high cost of farm inputs, limiting rural productivity and threatening food security.
While economic growth has picked up, the World Bank warned that inflation remains “high and sticky,” with food and fuel prices still a significant burden. The bank expects average inflation to ease to 22.1% in 2025, but it remains a major policy challenge.
Despite the positive growth, the World Bank’s outlook for 2025 is cautiously optimistic, forecasting a slightly improved GDP growth rate of 3.7%.
Although Nigeria’s economy is growing, millions of citizens continue to feel economic pain. The cost-of-living crisis — fueled by rising prices and stagnant incomes — remains the most pressing issue for Nigerian households.
Ordinary Nigerians are yet to feel the benefits of the reforms, with many calling for the government to cushion the impact of inflation and improve social welfare support.
