World Bank Forecasts 10.5% Revenue-to-GDP Growth for Nigeria

Nigeria’s economy is poised for a significant boost, with the World Bank forecasting a 10.5% revenue-to-GDP growth by year-end. This upward trajectory is largely driven by the oil sector’s expansion, which has recorded a 10.15% growth in the second quarter of 2024.

The non-oil sector, accounting for over 90% of Nigeria’s GDP, has also demonstrated resilience, maintaining a solid growth rate of 2.80%. The services sector, a key driver of the economy, has expanded by 3.79%, with financial and insurance services surging by 28.79%. The information and communication sector has also shown promise, growing by 5.17%.

The agricultural sector, despite facing challenges from adverse weather conditions and insecurity, has recorded a modest 1.41% growth. This underscores the sector’s potential for expansion and contribution to Nigeria’s economic diversification efforts.

The World Bank’s projection is a welcome development for Nigeria, Africa’s largest economy. The growth is expected to have a positive impact on the country’s fiscal landscape, enabling increased investment in critical infrastructure and social programs.

According to experts, this growth is attributable to the government’s efforts to stabilize the economy, coupled with favorable global oil prices. However, they caution that Nigeria must continue to diversify its economy to mitigate the risks associated with oil price volatility.

“Nigeria’s economic growth is encouraging, but it’s crucial to prioritize diversification and invest in sectors that drive sustainable development,” said Dr. Ngozi Okonjo-Iweala, a renowned economist.

As Nigeria strives to consolidate its economic gains, the World Bank’s projection offers a beacon of hope. With prudent economic management and strategic investment, Nigeria can unlock its vast potential and cement its position as a leading African economy.