The World Bank has raised its projection for Nigeria’s economic growth in 2026 to 4.3 percent, citing improving macroeconomic stability, stronger investor confidence and a gradual recovery in private investment.

In its October 2026 Africa Economic Update released on Tuesday, the bank also projected that Nigeria’s economy would grow by 4.4 percent annually in 2027 and 2028.

The World Bank said economic activity is expected to strengthen from 4.0 percent in 2025 to 4.3 percent this year, reflecting the impact of ongoing reforms and improved economic management.

The revised forecast comes after Nigeria recorded 4.43 percent year-on-year GDP growth in the second quarter of 2026, according to the National Bureau of Statistics.

Nigeria was among the African countries whose growth forecasts were upgraded, while the World Bank also raised its projection for sub-Saharan Africa to 4.3 percent in 2026, from an earlier estimate of 4.1 percent.

However, the bank cautioned that stronger economic growth has not yet translated sufficiently into poverty reduction, noting that growth in per-capita income continues to lag behind overall economic expansion.

It said Nigeria’s current growth rate remains insufficient to generate enough productive jobs and significantly reduce poverty.

The World Bank also warned that elevated fuel prices linked to disruptions caused by the conflict in the Middle East could continue to weigh disproportionately on low-income households.

According to the bank, sustained reforms, increased private investment, improved infrastructure, human capital development and stronger productivity will be critical to translating macroeconomic stability into improved living standards.

It further urged African countries to embrace artificial intelligence and other digital technologies to boost productivity and create jobs, while addressing infrastructure and skills gaps.