The World Bank has projected that Nigeria’s economy will grow by 3.5% in 2025, driven by improvements in key sectors such as agriculture, services, and manufacturing. The positive outlook marks a slight rebound from previous years, signaling cautious optimism about the country’s economic recovery.
According to the World Bank’s latest Global Economic Prospects report, Nigeria’s growth will be underpinned by reforms aimed at enhancing productivity, attracting investment, and diversifying the economy away from oil dependency. The forecast also reflects expectations of improved global economic conditions, which could benefit exports and foreign direct investments.
However, the report highlighted several risks that could dampen growth, including inflationary pressures, foreign exchange instability, and persistent structural challenges. The World Bank urged Nigerian policymakers to address these issues to sustain momentum and ensure inclusive growth.

Speaking on the projection, the Minister of Finance, Wale Edun, described it as an encouraging sign of progress but emphasized the need for continued reforms.
“This growth forecast reaffirms that we are on the right path, but much work remains to be done. Our focus will be on implementing policies that promote private sector participation, enhance infrastructure, and improve the ease of doing business,” Edun said.
Key sectors expected to drive growth include agriculture, which remains a critical source of employment and food security, and manufacturing, buoyed by increased investment in local production and export-oriented industries. The services sector, particularly telecommunications and fintech, is also forecasted to play a significant role in Nigeria’s economic expansion.
Economists have noted that achieving the projected growth will require addressing long-standing bottlenecks. These include inadequate power supply, poor transportation networks, and bureaucratic hurdles that stifle business operations.
Dr. Amina Yusuf, a development economist, stressed the importance of policy consistency and collaboration between the public and private sectors. “The 3.5% projection is attainable if we prioritize reforms in critical areas like infrastructure, education, and governance. Ensuring macroeconomic stability is equally crucial to sustaining investor confidence,” she said.
The World Bank also underscored the importance of leveraging human capital development to support long-term growth. Investments in education, healthcare, and skills training are seen as pivotal to unlocking the potential of Nigeria’s young and rapidly growing population.
The projected GDP growth comes amid global economic uncertainties, including fluctuating oil prices and geopolitical tensions. For Nigeria, the challenge will be to navigate these external factors while implementing domestic policies that foster resilience and inclusivity.
With the 2025 outlook generating cautious optimism, stakeholders agree that sustained efforts in reforming Nigeria’s economic landscape will be key to turning the forecast into reality. As the government and private sector work together to address challenges, the focus remains on building a more diversified and robust economy that benefits all Nigerians.
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