The World Bank Group has expressed concerns about the fragility of Nigeria’s economic growth trajectory, warning that the current growth of the economy may not translate into improved living standards for ordinary Nigerians unless grassroots-oriented policies are implemented to reduce the nation’s poverty level.
The bank’s Senior Economist for Nigeria, Dr. Samer Matta, expressed this concern in his contributions during a panel session last Thursday at the Nigeria Economic Summit Group’s (NESG’s) 2026 Macroeconomic Outlook Conference in Lagos.
The banker pointed out that macroeconomic stabilization alone cannot adequately improve household welfare, adding that though Gross Domestic Product (GDP) growth is desirable, but if it does not reach the poorest, it will be meaningless.
Noting that inflation, limited competition in key markets, and uneven fiscal spending in the states continue to undermine the translation of economic recovery into tangible benefits for ordinary Nigerians, Matta lamented that even when the subnational governments now controlled significant revenues, much of their budgetary expenditures do not always align with citizen needs, particularly in education, health, and social protection.
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To transform the economic growth to tangible benefits for ordinary Nigerians, he stressed that policy focus must go beyond aggregate growth figures, noting that reducing inflation, improving the quality of spending, and implementing social protection programs are essential to ensure that economic gains reach households.
While highlighting that structural reforms, such as supporting private sector-led growth and enhancing domestic savings, are crucial to sustaining economic consolidation, the development banker said that monetary policy alone cannot close the gap between macro stability and living standards and that to ensure inclusive growth, there must be coordinated fiscal, structural, and social measures.
On potential risks to Nigeria’s sustainable growth, Matta identified the 2027 elections as capable of slowing Nigeria’s GDP growth if fiscal and policy discipline are relaxed, adding that “complacency now could quickly erode the hard-won macroeconomic gains.”
The World Bank Chief Economist for Nigeria harped on the importance of investing in human capital by prioritizing early childhood education, primary healthcare, and vocational training, among others to unlock the nation’s demographic dividend for sustainable socioeconomic growth in the years ahead.
