The World Bank says Nigeria’s ongoing economic reforms are yielding positive results, with government revenue rising to ₦31.9 trillion in 2024 up from ₦16.8 trillion in 2023.
This was revealed in the latest Nigeria Development Update report titled “Building Momentum for Inclusive Growth,” released on Monday. The report credits the revenue boost to major fiscal and foreign exchange reforms.
According to the World Bank, Nigeria’s fiscal deficit dropped from 5.4% of GDP in 2023 to 3.0% in 2024. This improvement has helped stabilize the economy, increase investor confidence and create room for more spending on health, education and infrastructure.
“Nigeria has made impressive progress in restoring macroeconomic stability,” said Taimur Samad, acting World Bank Country Director for Nigeria. He urged the government to take advantage of the current momentum to boost development spending.
Reforms in the foreign exchange market have also helped narrow the gap between official and parallel market rates, making the system more transparent and credible.
However, inflation remains a concern. The World Bank expects it to average 22.1% in 2025, citing tighter monetary policy and improved policy credibility as key factors.
The report also highlights the need for more structural reforms to drive inclusive growth, reduce poverty and support job creation. It warns that sectors like finance and ICT, while growing fast, are not generating enough jobs to meet Nigeria’s needs.
The World Bank called on Nigeria to focus on improving infrastructure, expanding access to finance, and creating a business-friendly environment to reach its $1 trillion economy goal by 2030.