The World Bank has warned that Nigeria’s economy is still fragile even though it is showing signs of recovery, and said the country needs strong policies to reduce poverty for ordinary people to benefit from growth, officials said at an economic summit.
Dr Samer Matta, the World Bank’s Senior Economist for Nigeria, spoke at the Nigeria Economic Summit Group (NESG) 2026 in Lagos on Thursday, January 15, 2026.
She said simply having economic growth is not enough if poor citizens do not feel improvements in their lives. “Growth is welcome, but if it does not reach the poorest, it will be meaningless,” Matta said.
The World Bank pointed to several problems that are slowing down the benefits of recovery, including high inflation, limited competition in key markets, and uneven public spending across states.
It said these issues make it hard for growth to translate into better living standards, especially in areas like healthcare, education and social support.
Matta said that although more money might be flowing through the economy, subnational governments — like state and local authorities — must focus their budgets on things citizens need most, especially in poorer communities.
She added that monetary policy alone is not enough and that better spending, social safety nets, and support for business investment are key to inclusive growth.
The World Bank also listed structural reforms as important. These include supporting private sector‑led growth, boosting domestic savings and investing in human capital — such as early childhood education, primary health care and skills training — to help Nigerians gain steady income and productivity.
Bank officials warned that the 2026 election year could pose risks to economic progress if policies weaken or if fiscal discipline is loosened. They said that keeping steady economic reforms and focusing on people’s welfare must be a top priority.
The warning comes as Nigeria works to translate broader macro‑economic improvements into real benefits for households, with many Nigerians still struggling with high food and living costs despite signs of growth.
Experts say targeted actions will help ensure that future economic gains lead to jobs, reduced poverty and stronger living standards for more citizens.
