₦airaland Forum

Nigeria Remains Africa’s Largest Economy, says World Bank

The World Bank’s Country Director for Nigeria, Dr. Ndiame Diop, has confirmed that Nigeria remains the largest economy in Africa by Gross Domestic Product (GDP) despite the challenges faced by its private sector.

Speaking at the Country Private Sector Diagnostic (CPSD) and Stakeholder Engagement in Abuja yesterday, Dr. Diop said while Nigeria receives far less Foreign Direct Investment (FDI) than its potential warrants—especially in comparison to countries like Indonesia and South Africa—it continues to hold its position as Africa’s biggest economy.

He stated that the CPSD report, set to be released in the coming weeks, will reveal the impact of private sector constraints on economic growth.

He noted that if targeted actions were taken to remove these obstacles, Nigeria’s economic potential would be significantly enhanced.

The current macroeconomic reforms, he explained, have created a favorable environment for such changes. He cited the country’s recent economic stabilization measures, particularly exchange rate market adjustments and improved access to foreign exchange, as critical steps that have already enhanced investment conditions.

Dr. Diop outlined four key sectors where strategic reforms could unlock massive investment and job creation. In the Information Communication Technology (ICT) sector, investment opportunities worth up to $4 billion could be realized, potentially creating more than 200,000 jobs.

In agribusiness, reforms could unlock $6 billion in investment and generate over 275,000 jobs.

The solar photovoltaic (PV) industry holds the potential for $8.5 billion in investment and more than 129,000 jobs, while the pharmaceutical sector could attract $1.6 billion and create more than 30,000 to 40,000 jobs.

For the ICT sector, he identified the high, unpredictable, and inconsistent right-of-way fees, levies, and informal charges—comprising 30 to 70 per cent of broadband rollout costs—as a major barrier. Addressing these regulatory inconsistencies, he argued, would be a game-changer for broadband expansion. He acknowledged that the National Economic Council has recognized this issue and that progress is being made through a World Bank-supported initiative.

Additionally, he pointed to challenges such as vandalism, limited financing for rural broadband expansion, and the need for competitive access to wholesale fiber. He noted that efforts are underway in collaboration with government agencies to resolve these issues, and the World Bank, the International Finance Corporation (IFC), and private investors are prepared to support broadband infrastructure development.

On solar power, Dr. Diop described Nigeria’s energy sector as difficult but noted that renewable energy access, particularly solar PV, has been a bright spot. He explained that private sector investment in renewable energy has historically been hindered by high costs and unviable tariffs. However, blended finance mechanisms supported by the World Bank and IFC have helped bridge this gap, making off-grid solutions more viable.

He pointed to the DES project, which aims to connect 17.5 million households and businesses to solar power, as evidence of growing private sector interest. While the solar industry is expanding, he stressed that reforms to improve Nigeria’s grid electricity supply remain crucial for industrialization.

The Regional Director for Central Africa and Anglophone West Africa at the IFC, Dr. Dahlia Khalifa, stressed the importance of consistency in regulatory policies, particularly in customs duties and revenue agency fees. She noted that unpredictability discourages private sector investment, as businesses rely on stable regulatory environments for strategic planning.

Khalifa also pointed out that while direct job creation in the pharmaceutical sector may be lower compared to other industries, improved healthcare services would yield far-reaching economic benefits.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, commended the IFC for its support across critical sectors, including agriculture, infrastructure, and pharmaceuticals. He highlighted key financing partnerships such as the $1.2 billion facility for Indorama’s fertilizer expansion in Eleme, investments in cocoa processing, and a $70 million SME financing initiative with First City Monument Bank.

He also acknowledged IFC’s latest commitment of $70 million to five Nigerian companies under the Distributive Access to Renewable Energy programme, part of the federal government’s broader Mission 300 initiative.

Edun said President Bola Tinubu’s administration has undertaken bold and necessary reforms that have reshaped Nigeria’s economic landscape. He noted that the removal of wasteful subsidies has strengthened government finances, while improved security has boosted oil production and revenue. He highlighted that private sector confidence is growing, with new investments beginning to materialize in response to the government’s policy changes.

The minister restated the administration’s commitment to addressing the cost-of-living crisis, particularly through increased food production and affordability measures. He acknowledged that reforms such as the removal of fuel subsidies and the adoption of market-based pricing mechanisms have led to short-term inflationary pressures. However, he assured that targeted interventions, including direct cash transfers to vulnerable citizens with World Bank support, will help mitigate the impact.

He insisted that the government remains determined to leverage technology to ensure swift, biometric-enabled assistance to those in need.

https://thenationonlineng.net/nigeria-remains-africas-largest-economy-says-world-bank-2/

Good o.

So those Ebin pa wa piposes,make Una shattap

How can 188 billion economy be the largest ? This man must mean largest by potential

Largest economy that can only deliver 4000MW electrity for 200M people with 20M out of school children?

But we have the highest number of people living below poverty level in the world. What an irony

Be like las las na statistics we go chop o

E pain dem.

Ojuntana:
Be like las las na statistics we go chop o

If u like no go handle your business properly, na Stone u go chop for Nigeria.

Dey there as if anyone owes u anything

SalamRushdie:
How can 188 billion economy be the largest ? This man must mean largest by potential

We will rebase the GDP this year and emerge the largest economy.

I guess world bank leader already knows that from the inside.

If you don’t know that by now too, then you’re not well informed.

Decidetolive:
But we have the highest number of people living below poverty level in the world. What an irony

I hearsay https://en.m.wikipedia.org/wiki/List_of_countries_by_percentage_of_population_living_in_poverty

Ojuntana:
Is that why you're a failed scammer
You better go find better job do
Looking for busty pictures of ladies is not a career

Hahaha crying more than the bereaved?

Go & get a life man, Tinubu is not coming to help u ungrateful thing to amount to anything.

You can wail till your eyeballs fall off, u are on your own buddy.

blacknp:
Hahaha crying more than the bereaved?

Go & get a life man, Tinubu is not coming to help u ungrateful thing to amount to anything.

You can wail till your eyeballs fall off, u are on your own buddy.

Says a failed scammer cum latter day zombie .

Sebi Tinubu don help you with 30k zombie job

At least it's better than looking for pictures for 10k to scam whites with

Tinubu gat you with agbado

Ojuntana:
Says a failed scammer cum latter day zombie .

Sebi Tinubu don help you with 30k zombie job

At least it's better than looking for pictures for 10k to scam whites with

Tinubu gat you with agbado

Make u go find something do with yourself o, President Tinubu will not do anything for u ungrateful Nigerian citizen o.

Make u dey shout upandan, no one is coming to help u, go to the business or investment section of Nairaland go hustle, u dey politics section dey shout Tinubu this, Tinubu that?

You be journalist?

Ojuntana:
Says a failed scammer cum latter day zombie .

Sebi Tinubu don help you with 30k zombie job

At least it's better than looking for pictures for 10k to scam whites with

Tinubu gat you with agbado

Guy go hustle, after all this long yenning one Naira no go enter your pocket o.

Ojuntana:
Yeah
By adding prostitution, drugs trafficking, child trafficking and other illegality to our GDP

We will add everything Jonathan government added in 2014 that made us emerge largest economy in Africa.

maiunguwar:
Largest economy that can only deliver 4000MW electrity for 200M people with 20M out of school children?

GDP is not calculated by how many watts of electricity you generate, or number of ''out of school children''.

Olodo.

LegendHero:
We will rebase the GDP this year and emerge the largest economy.

I guess world bank leader already knows that from the inside.

If you don’t know that by now too, then you’re not well informed.

EXACTLY.

Decidetolive:
But we have the highest number of people living below poverty level in the world. What an irony

Because at 250 million-strong, we're the 2nd largest DEVELOPING COUNTRY in the world by population. Even if 40 million are poor, we would still have ''the highest number of people living below poverty level in the world''.

On the OTHER side, NIGERIA has the largest, fastest-growing, and most buoyant middle class in Africa, and the largest number of educated people in Africa.

LegendHero:
We will rebase the GDP this year and emerge the largest economy.

I guess world bank leader already knows that from the inside.

If you don’t know that by now too, then you’re not well informed.

Before you rebase there must be some substance and growth in the economy.. currently all the related numbers show economic disaster

SalamRushdie:
Before you rebase there must be some substance and growth in the economy.. currently all the related numbers show economic disaster

Stop lying. There has been stronger GDP growth in the last year, courtesy of on-going reforms.

Even AI is referring to ''a modest recovery'' in Nigeria.

''Nigeria's GDP growth rate in 2025 is projected to be between 3% and 3.6%. This is a modest recovery from previous years, when growth has been below 3.5%''.

- AI ChatGPT

SalamRushdie:
Before you rebase there must be some substance and growth in the economy.. currently all the related numbers show economic disaster

Nope. The economy is growing.

But there is inflation which explain why people are complaining.

If Nigeria like rebase your gdp, the koko is how does it make life easier for ordinary Nigerians. China gdp growth creates jobs, Nigeria gdp does the reverse

This is a matter of fact. I’ve been to the other two contenders SA and Egypt (in transit flight) and I can say for sure that Nigeria is way bigger economically

If it’s paining you go and hit your head on a rock

The way Tinubu is pushing for Nigeria's economy growth,Nigeria is going to be the 8th economy in the world before 2031.
Kudos to Nigerians
This hardship is still biting sha

E go pain them. Why? Witchcraft, that's why.

You don't make these things up. Start working hard and stop complaining or begging. Go to your village or where you can get land and farm. Farmers are making serious millions. You sit down in Lagos and state capitals begging and insulting Tinubu, are you cursed with laziness?

No doubt about that and nothing can change that anytime soon

What does largest mean? Largest in debt or corruption or population? Sounds like propaganda and image laundering.

True.

With Dangote, Port Harcourt and Warri refineries producing, and big companies declaring unprecedented profits (even allowing for naira devaluation), the various infrastructural projects and property developments going on not just in Lagos, Abuja, Port Harcourt but also in several cities and towns up and down the country, I have often wandered how any other country in Africa can have a bigger economy than Nigeria.

An economy of 220 million people is no beans. That makes Nigeria the 7th or 8th most populous country in the world. South Africa can't buy that type of population in any market.

If the economy keeps improving, and can reach 6% annual growth rate within the next 3years, within 10 years, the entire economy of South Africa will only be slightly bigger that the economy of the South West.

Nigeria is big and mighty. We just need to sort out our economy, governance, and attitude.

Yes big for northing.