World Bank Nigeria director Mathew Verghis says there is no reason Nigeria cannot grow by 7-8% a year, arguing that Africa’s largest economy should be far more ambitious after recent reforms helped restore macroeconomic stability and strengthen investor confidence.
A higher growth ambition
In an interview with African Banker, Verghis said Nigeria has the scale, population, resources and entrepreneurial capacity to achieve much faster expansion than current forecasts suggest. His comments come as the World Bank projects growth of about 4.2% in 2026, following 4.0% growth in 2025.
Verghis argued that while recent performance marks progress, it is not enough for a country with Nigeria’s demographic pressures and development needs. Faster growth, he suggested, is essential if Nigeria is to create jobs, reduce poverty and improve living standards at scale.
Reforms create momentum
Nigeria has implemented major economic reforms in recent years, including the removal of fuel subsidies, currency liberalisation and tax system adjustments. These measures have helped improve public finances, strengthen external reserves and narrow fiscal imbalances.
The World Bank has said Nigeria has made meaningful progress in restoring macroeconomic stability, with growth supported largely by services, non-oil sectors and improved oil production. International ratings agencies have also responded more positively to Nigeria’s economic direction, with S&P recently upgrading the country’s sovereign credit rating.
Private sector must drive growth
Verghis said the key challenge is turning macroeconomic stabilisation into broad-based expansion. That requires stronger private investment, deeper financial markets, better infrastructure and a more predictable business environment.
The banking sector is expected to play a central role by shifting more capital towards productive lending as returns on government securities decline. Increased credit to businesses, especially small and medium-sized enterprises, could help unlock investment and employment.
Growth must reach households
Despite improving headline indicators, many Nigerians continue to face high living costs, food insecurity and pressure from inflation. The World Bank has warned that macroeconomic gains must be translated into real improvements for households.
That means maintaining fiscal discipline while investing in health, education, energy access and early childhood development. Without stronger human capital and better public services, higher growth may fail to deliver the inclusive gains Nigeria needs.
A decisive moment
Verghis’ message is clear: Nigeria should not settle for modest expansion. With the right policy mix, stronger institutions and sustained reform momentum, the country could move towards the 7-8% annual growth needed to transform its economy.
The challenge now is execution. Nigeria has regained some macroeconomic credibility, but turning that into faster, inclusive and sustained growth will require consistency, investment and confidence from both domestic and international capital.
Newshub Editorial in Africa – 29 June 2026
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