The World Bank has declared that Nigeria's economy is in good shape, reporting a growth of 3.4 percent in 2024 despite widespread hardship and high inflation rates across the country.

Taimur Samad, the World Bank's Acting Country Director for Nigeria, made this announcement during the unveiling of the Nigeria Development Update (NDU) in Abuja on Monday. He attributed the positive economic outlook to the country's commitment to sustained reforms.

"The Nigerian economy is improving due to the country's commitment to sustained reforms," Samad stated, pointing to several indicators including a stable exchange rate, rising foreign reserves, and improved fiscal conditions.

According to Samad, economic growth in the last quarter of 2024 surged to 4.6 percent year-on-year, contributing to the full-year growth of 3.4 percent—the highest since 2014, excluding the post-COVID rebound of 2021-2022.

"Additionally, the fiscal deficit shrank from 5.4 percent of gross domestic product (GDP) in 2023 to 3.0 percent in 2024," he explained. "This positive trend was driven by a sharp rise in federation revenues, which increased from N16.8 trillion in 2023 (7.2 percent of GDP) to an estimated N31.9 trillion in 2024 (11.5 percent of GDP)."

Persistent Challenges Amid Growth

Despite the encouraging growth figures, Samad emphasized that significant challenges remain, particularly the persistent high inflation, which stood at 24.23 percent in March 2025. He stressed the importance of the Central Bank of Nigeria maintaining tight monetary policies to ensure continued economic stability.

"It is clear that sustained momentum and further reforms are necessary to drive growth and expand economic opportunities," Samad added.

Alex Sienaert, the World Bank's Lead Economist for Nigeria, provided additional insights, emphasizing the need for careful monitoring of revenue gains from the fuel subsidy removal while cautioning against overly ambitious budget projections for 2025.

Sienaert also highlighted the importance of scaling up targeted cash transfer programs to assist vulnerable populations. He outlined several steps for achieving macroeconomic stability, including reducing governance costs and accelerating economic growth pace.

Contrasting Perspectives

The World Bank's positive assessment comes just a week after African Development Bank (AfDB) President Akinwumi Adesina claimed that with Nigeria's current GDP per capita of $824, Nigerians are worse off than they were at independence in 1960.

Presidential spokesperson Bayo Onanuga dismissed Adesina's claim, attributing it to "ignorance and perhaps bias against any talk on the economy as it relates to this government."

Sienaert advocated for a private sector-led, public sector-facilitated growth strategy to address critical infrastructure gaps, particularly in electricity and transportation, while fostering a competitive and open business environment to sustain Nigeria's economic recovery.