Nigeria’s Economy Rebounds Strongly—But Inflation Lingers

Nigeria’s economy posted its strongest growth in nearly a decade in 2024, expanding by 4.6% in the final quarter, thanks to bold fiscal reforms and increased revenue. According to the World Bank, measures by President Bola Tinubu—such as ending fuel subsidies and overhauling the currency regime—have boosted government coffers and stabilized exchange rates, with official reserves now topping $37 billion. Revenue also rose by 4.5% of GDP in 2024, shrinking the fiscal deficit from 5.4% to 3%. However, inflation remains high, fueled in part by the very reforms driving growth. Although growth is expected to continue into 2025, the World Bank stresses that tight monetary discipline is crucial to sustain progress and shield the economy from external shocks.