₦airaland Forum

The World Bank has cautioned that Nigeria’s current economic growth rate may be too slow to meet the federal government’s ambitious target of transforming the country into a $1 trillion economy by 2030.

This was disclosed in its latest Nigeria Development Update (NDU) report titled “Building Momentum for Inclusive Growth”, released on Monday.

According to the Bretton Woods institution, achieving this economic milestone will require a significant ramp-up in the country’s growth trajectory, by as much as fivefold.
“The pace of growth in Nigeria needs to accelerate further to meet its aspirations and deliver poverty reduction and shared prosperity. The economy would need to grow at a rate about five times higher than recently to achieve a US$1 trillion economy by 2030, the government’s aspiration,” the World Bank stated.

Growth Without Inclusion
While Nigeria’s gross domestic product (GDP) grew by 3.84% in Q4 2024, according to the National Bureau of Statistics (NBS), the World Bank notes that this is far below the level required to reduce poverty, create jobs, and achieve long-term prosperity.

The report emphasized that it is not just the rate of growth that matters, but also the composition and inclusiveness of that growth.
“To succeed, the economy has to grow at a faster pace, but also in a more inclusive way. Not only must the economy grow faster, but it also needs to grow in such a way as to generate jobs and opportunities for the Nigerians who need it most: the poorest and least prosperous,” the report said.

It noted that while sectors like finance and ICT are currently among the best-performing segments of the economy, they are not sufficient to drive mass employment. These sectors, although important for GDP growth, do not provide widespread job opportunities for the general population, particularly the youth and low-skilled workers.

Need for Structural Transformation
The World Bank advised that the composition of Nigeria’s growth must be rebalanced towards sectors and firms that are labor-intensive and capable of generating broader economic opportunities.
Agriculture, manufacturing, and services targeted at domestic consumption were listed as critical to achieving this transformation.

These sectors not only have the capacity to absorb a large share of the labor force but also to deliver more equitable income distribution across the country.

Policy Implications and the Role of Government
The report acknowledged that President Bola Tinubu’s administration has made bold moves in implementing reforms such as fuel subsidy removal and exchange rate unification, but it warned that without accelerating structural transformation and improving governance, the potential gains from these reforms may not be fully realized.

More insights
During the Nigeria Economic Summit in 2023, President Tinubu stated that a $1 trillion economy is possible by the end of the decade in 2030.

Several analysts, including the Managing Director of Financial Derivative Company, Bismarck Rewane, have stated that President Tinubu’s $1 trillion economy target of the current administration will not be possible in the next five to six years.

Agbegbaorogboye:
The World Bank has cautioned that Nigeria’s current economic growth rate may be too slow to meet the federal government’s ambitious target of transforming the country into a $1 trillion economy by 2030.

This was disclosed in its latest Nigeria Development Update (NDU) report titled “Building Momentum for Inclusive Growth”, released on Monday.

According to the Bretton Woods institution, achieving this economic milestone will require a significant ramp-up in the country’s growth trajectory, by as much as fivefold.
“The pace of growth in Nigeria needs to accelerate further to meet its aspirations and deliver poverty reduction and shared prosperity. The economy would need to grow at a rate about five times higher than recently to achieve a US$1 trillion economy by 2030, the government’s aspiration,” the World Bank stated.

Growth Without Inclusion
While Nigeria’s gross domestic product (GDP) grew by 3.84% in Q4 2024, according to the National Bureau of Statistics (NBS), the World Bank notes that this is far below the level required to reduce poverty, create jobs, and achieve long-term prosperity.

The report emphasized that it is not just the rate of growth that matters, but also the composition and inclusiveness of that growth.
“To succeed, the economy has to grow at a faster pace, but also in a more inclusive way. Not only must the economy grow faster, but it also needs to grow in such a way as to generate jobs and opportunities for the Nigerians who need it most: the poorest and least prosperous,” the report said.

It noted that while sectors like finance and ICT are currently among the best-performing segments of the economy, they are not sufficient to drive mass employment. These sectors, although important for GDP growth, do not provide widespread job opportunities for the general population, particularly the youth and low-skilled workers.

Need for Structural Transformation
The World Bank advised that the composition of Nigeria’s growth must be rebalanced towards sectors and firms that are labor-intensive and capable of generating broader economic opportunities.
Agriculture, manufacturing, and services targeted at domestic consumption were listed as critical to achieving this transformation.

These sectors not only have the capacity to absorb a large share of the labor force but also to deliver more equitable income distribution across the country.

Policy Implications and the Role of Government
The report acknowledged that President Bola Tinubu’s administration has made bold moves in implementing reforms such as fuel subsidy removal and exchange rate unification, but it warned that without accelerating structural transformation and improving governance, the potential gains from these reforms may not be fully realized.

More insights
During the Nigeria Economic Summit in 2023, President Tinubu stated that a $1 trillion economy is possible by the end of the decade in 2030.

Several analysts, including the Managing Director of Financial Derivative Company, Bismarck Rewane, have stated that President Tinubu’s $1 trillion economy target of the current administration will not be possible in the next five to six years.

Parydelegate:
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jayAjoku:
what they actually mean is nigeria is not taxing its citizens enough for the world banks standards. we dont need to listen to these white devils, we need to produce and use our own things that is when we can experience growth as a nation, most of the western nations are producers and they force their goods on africans by stifling our economies and economic prospects.

surgical:
He should better remove ,more subsidy, properly or genuinely float the naira
He will meet the world bank standard

Agbegbaorogboye:
https://nairametrics.com/2025/05/12/world-bank-to-tinubu-nigerias-growth-rate-too-slow-for-1-trillion-economy-goal/

Twist4u:
The man Tpain doesn't understand GDP. infact, he stated clearly during election that" NA STATISTICS WE GO CHOP"??

According to Ronus, the economy is moving as fast as the speed of light.

haybhi1:
Most of us only take, we don't give.
We rely too much on imports. That's not how to grow an economy. The little instances we give home grown production a chance, it appears they overdo it and use their greed to abuse it. For instance, look at Dangote cement, raw materials and everything is here, it keeps soaring yet; not only Dangote but other large-scale consumer manufacturers, like BUA, e.g salt makers, do we import salts?

Look at rice farmers lamenting the waiver of Tinubu on imported rice, yet they hiked rice to >100k for their gains, despite government agricultural intervention—I'm sure they'll be no country in the world where imported rice cost lesser than local rice except Nigeria, under Buhari.

NOETHNICITY:
Nigeria business owners are the world’s greediest you can ever imagine!

Buhari’s administration did everything for our rice farmers. What did they give back in return? They strangled the nation. They started rebagging locally produced rice with imported brand’s bags

That how terrible we can be

Look at Dangote refinery. After the price of crude has dropped at the international market there is no reason why Dangote should be foot dragging in reducing the price of pms as the price of his products is shoulder to shoulder with the imported counterparts

PlasmaTV:
We shouted, screamed, convinced and encouraged people to vote competence over tribalism.

But people said NO. They said they'd rather vote for a man who's past is shady. They said they'd vote for a man who made so many stewpeed statements during his campaign. Statements like:
1. Emilokan
2. Na statistics we go chop
3. Agbado and cassave
4. Bulaba.

Now, Nigeria has slid further into the hold Buhari dug for it. And it's getting worse. This government has resorted to ruling by PROPAGANDA. Sponsored fake news.

If you criticize their stewpeed policies,Bayo Onanuga and his merry band of paid sl@ves will accuse you of not supporting an incompetent leader.

The ostentatious display of national wealth is an eye sore and a disgrace. Before, when someone misappropriated billions, everyone would be too shocked to speak. Now, billions is the name of the game. President wanna change his shiny private jet? Go ahead. He needs a yatch for cruise? Order for it. Vice president's apartment needs a facelift? Renovation galore.

Guess what? All of these m@d expenses are in BILLIONS of naira. Lololololollllll

I've been around for a few decades and I've not seen things this bad. It's highly unfortunate.

PS: Waiting for Helinus to come and bash the WB again. And let him find a way to blame Obi for this. Maybe he'd say Obi bribed the WB. I'm also waiting for Bayo Onanuga. Agbaya 1 of Africa.