World Bank
World Bank reaffirms Nigeria remains Africa’s largest economy
The World Bank has affirmed Nigeria as Africa’s largest economy, and also projected that country’s economy will continue to grow.
The World Bank’s Country Director for Nigeria, Dr. Ndiame Diop, said Nigeria, by Gross Domestic Product (GDP) is the largest economy despite the challenges faced by its private sector.
Dr Diop, who spoke at the Country Private Sector Diagnostic (CPSD) and Stakeholder Engagement in Abuja on Thursday, stated that while Nigeria receives far less Foreign Direct Investment (FDI) than its potential warrants—especially in comparison to countries like Indonesia and South Africa—it continues to hold its position as Africa’s biggest economy.
According to him, the CPSD report, set to be released in the coming weeks, will reveal the impact of private sector constraints on economic growth.
He said if targeted actions were taken to remove these obstacles, Nigeria’s economic potential would be significantly enhanced.
The current macroeconomic reforms, he explained, have created a favorable environment for such changes.
He cited the country’s recent economic stabilisation measures, particularly exchange rate market adjustments and improved access to foreign exchange, as critical steps that have already enhanced investment conditions.
In the Information and Communication Technology (ICT) sector, investment opportunities worth up to $4 billion could be realised, potentially creating more than 200,000 jobs, he said..
He further stated in agribusiness, reforms could unlock $6 billion in investment and generate over 275,000 jobs.
The solar photovoltaic (PV) industry, according to him, holds the potential for $8.5 billion in investment and more than 129,000 jobs while the pharmaceutical sector could attract $1.6 billion and create more than 30,000 to 40,000 jobs.
For the ICT sector, he identified the high, unpredictable, and inconsistent right-of-way fees, levies and informal charges—comprising 30 to 70 percent of broadband rollout costs—as a major barrier.
He said what would be a game-changer for broadband expansion, acknowledging that the National Economic Council has recognised this issue and that progress is being made through a World Bank-supported initiative.
In 2024, the World Bank projected that Nigeria’s GDP would grow by 3.3%.
The World Bank also projects that Nigeria’s GDP will average 3.7% growth from 2025 to 2027.
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