Nigeria’s economy appears to be regaining momentum, according to a new World Bank assessment that highlights steady growth in non-oil sectors and improved investor confidence. Despite these encouraging signs, experts warn that the country still faces serious challenges, including persistent food inflation, high unemployment, and slow progress in inclusive growth.
Economic Recovery Beyond Oil
For years, Nigeria’s economic performance has depended heavily on oil exports. However, recent data show an important shift. The World Bank report noted that growth in services, telecommunications, fintech, and agriculture has helped cushion the impact of fluctuating global oil prices.
“The non-oil economy is driving Nigeria’s recovery,” the report said, pointing to increased productivity among small businesses, better access to mobile banking, and an expanding agricultural value chain.
In Lagos, the hub of financial activity, business owners say things are gradually improving. “Customers are spending again, though prices are still high,” said Tunde Ayeni, a small electronics trader. “We just hope the government keeps the naira stable.”
Inflation: The Persistent Challenge
While growth indicators are trending upward, inflation continues to bite hard. According to the National Bureau of Statistics, food prices remain the biggest driver of inflation. Items like rice, garri, beans, and tomatoes have more than doubled in price compared to last year.
“The economy might be growing on paper, but many Nigerians are struggling daily,” said economist Blessing Ude. “We need policies that translate growth into better living conditions — especially for low-income families.”
Government Response
The Tinubu administration has acknowledged the strain inflation places on households and pledged to strengthen monetary policy coordination between the Central Bank and the Ministry of Finance. Officials say recent reforms — including removal of fuel subsidies and exchange-rate unification — are designed to stabilise long-term growth, even if short-term pain persists.
Minister of Finance Wale Edun told journalists in Abuja that the government is “laying the foundation for a sustainable economy where growth benefits every Nigerian, not just a few sectors.”
Analysts, however, argue that the success of these reforms will depend on how quickly the government can improve power supply, expand social safety nets, and support micro-enterprises.
Household Impact and Cost of Living
For many Nigerian families, the reality of daily life remains tough. Rising transport costs, rent, and food prices have eroded purchasing power. The average household now spends more than 60% of income on food, according to the World Bank.
“I can’t remember the last time I filled my gas cylinder completely,” said Chioma Eze, a mother of three in Enugu. “Everything is expensive — from bread to school fees. We just manage and pray it gets better.”
Still, some Nigerians are optimistic. With digital jobs, remote work, and youth entrepreneurship on the rise, many see potential in the changing economy. “The youth are adapting faster than before,” said analyst Bamidele Ayo. “Tech startups and creative industries are keeping hope alive.”
The Road Ahead
Economists recommend that Nigeria focus on key areas to sustain growth:
- Expand access to credit for small and medium enterprises (SMEs).
- Boost agricultural production and food processing to curb import dependence.
- Improve infrastructure — especially electricity and road networks.
- Strengthen transparency and fight corruption in fiscal spending.
The World Bank concludes that while Nigeria is showing positive economic momentum, achieving inclusive prosperity will require consistency, accountability, and innovation at every level.
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