World Bank lauds Nigeria’s economy, Naira stability under CBN reforms
The World Bank has credited recent reforms by the Central Bank of Nigeria (CBN) for bringing greater stability to the naira and improving liquidity in the foreign exchange (FX) market.
In its latest Africa’s Pulse regional economic outlook, the Bank noted that while the naira was one of the continent’s worst-performing currencies over the past year—alongside the South Sudanese pound and the Ethiopian birr—recent policy changes have helped steady the Nigerian currency.
The CBN’s move toward a unified, market-determined exchange rate was highlighted as a key factor in making the naira more competitive, resulting in reduced volatility and improved access to foreign exchange.
The World Bank also reported that Nigeria’s economy outperformed expectations in late 2024. Real GDP rose from 3.1% in Q3 to 4.6% in Q4, driven largely by growth in non-oil sectors such as financial services and telecommunications.
Oil production also rebounded, increasing from 1.47 million barrels per day in 2023 to 1.55 million in 2024. This helped the crude oil sector grow by 5.5% over the year, with the overall industrial sector expanding by 2.4%.
The report also noted that Nigeria’s current account surplus is expected to grow—from 9.2% of GDP in 2024 to 9.4% by 2026—thanks to the naira’s depreciation, decreased imports, and higher remittances.
Echoing the World Bank’s optimism, global ratings agency Fitch recently upgraded Nigeria’s credit rating to a ‘B’ with a stable outlook, citing improved policy credibility and a reduced risk to economic stability.
