The World Bank has cautioned that Nigeria’s recent economic recovery remains delicate and may fail to improve the living conditions of millions of citizens unless deliberate policies are introduced to tackle poverty and inequality.
The warning was issued on Tuesday by the World Bank’s Senior Economist for Nigeria, Dr Samer Matta, during the 2026 Macroeconomic Outlook presentation organised by the Nigeria Economic Summit Group in Lagos.
Matta said economic growth figures alone were not enough to guarantee better welfare outcomes for households, stressing that growth must be inclusive to have real meaning for ordinary Nigerians.
She noted that persistent inflation, weak competition in key sectors, and uneven public spending across states continued to prevent economic gains from translating into improved livelihoods.
According to her, while subnational governments now command larger financial resources, spending priorities often fail to reflect the immediate needs of citizens, particularly in education, healthcare, and social protection.
Matta emphasised that stabilising macroeconomic indicators without addressing household welfare would limit the impact of recent reforms. She said targeted measures such as inflation control, efficient public spending, and stronger social safety nets were necessary to ensure recovery benefits reached vulnerable populations.
The economist added that long term economic stability would depend on structural reforms that promote private sector driven growth and boost domestic savings, noting that monetary policy alone could not bridge the gap between macroeconomic stability and living standards.
She also warned that the approaching election cycle posed fiscal risks, cautioning that relaxed discipline could reverse recent economic gains.
Matta further underscored the need for sustained investment in human capital, particularly early education, primary healthcare, and skills training, describing them as critical to unlocking Nigeria’s demographic potential and long term productivity.
The World Bank said Nigeria must balance reform consolidation with urgent poverty reduction efforts to achieve sustainable and inclusive growth.
