World Bank Retains Nigeria’s 2026 Growth Forecast at 4.1%

Ondopress.com The World Bank has retained Nigeria’s economic growth forecast for 2026 at 4.1% and for 2027 at 4.2%. However, the global financial institution warned that the Middle East conflict has triggered a fresh shock to the global economy, raising energy prices and renewing inflationary pressures.

The World Bank projected global growth to moderate to 2.5% in 2026 from 2.9% in 2025. It also warned that severe energy disruptions could cut global growth to as low as 1.3%.

Higher energy prices could worsen Nigeria’s inflationary pressures, affecting household purchasing power.

Renewed global inflation may force the Central Bank to maintain higher interest rates, slowing business investment.

Weaker global growth could reduce demand for Nigerian oil exports, impacting government revenue.

Developing economies face prolonged income stagnation, with per capita incomes not returning to pre‑pandemic levels until after 2028.

Rising sovereign debt levels leave Nigeria more vulnerable to higher interest rates and debt‑servicing costs.

The World Bank urges policymakers to balance inflation control with measures to support economic activity, improve debt management, and diversify revenue sources to build resilience.