Nigeria’s economy recorded its strongest growth in nearly ten years in 2024, driven by a strong finish in the fourth quarter and a more stable fiscal outlook, according to the World Bank.

The international lender said the country’s GDP grew by 4.6% year-on-year in Q4 2024, capping off a performance that has spilled into early 2025 based on high-frequency business indicators.

“The economy grew by 4.6% in the fourth quarter, which was a strong finish and has carried into this year,” said Alex Sienaert, the World Bank’s lead economist for Nigeria, on Monday.

The institution now forecasts that Nigeria’s economy will grow by 3.6% in 2025.

But while growth is on the rise, inflation remains a stubborn hurdle.

The World Bank warned that high inflation continues to weigh on households and businesses, even as economic reforms push fiscal numbers in the right direction.

Since assuming office, President Bola Tinubu has rolled out sweeping economic changes intended to stabilize Africa’s largest economy.

These include the removal of fuel and electricity subsidies, and a major devaluation of the naira.

While aimed at correcting long-term distortions, these reforms have sparked sharp increases in living costs, triggering public discomfort.

Despite this, the World Bank projects inflation could ease to an average of just over 22% in 2025, assuming that the Central Bank of Nigeria maintains its current tight monetary policy.

“It’s a very challenging environment for Nigerians,” Sienaert acknowledged, “but the policy direction is showing fiscal results.”

Government revenue climbed by 4.5% of GDP in 2024, a “remarkable achievement,” according to Sienaert, driven by improved tax collection, increased remittances, and the end of foreign exchange subsidies.

These changes also contributed to stabilizing the naira, now under a unified and market-reflective exchange rate regime.

Official foreign reserves have surpassed $37 billion, helping to strengthen Nigeria’s economic fundamentals.

The boost in revenue helped narrow the country’s fiscal deficit to an estimated 3% of GDP in 2024, down from 5.4% the previous year.

However, Sienaert noted that the full financial benefit of fuel subsidy removal has yet to fully materialize, as structural adjustments continue.

The World Bank’s latest findings paint a picture of a Nigerian economy that is turning a corner, even as millions continue to feel the weight of price increases.

The challenge ahead lies in translating macroeconomic gains into real relief for everyday citizens.