The World Bank has cautioned that Nigeria’s recent economic recovery, while encouraging on paper, remains fragile and may not improve the living conditions of millions of citizens unless deliberate, people-focused policies are put in place.
This warning was issued by the World Bank’s Senior Economist for Nigeria, Dr. Samer Matta, during the Nigeria Economic Summit Group (NESG) 2026 Macroeconomic Outlook presentation held in Lagos. She stressed that macroeconomic stability alone is not enough to lift households out of hardship.
“Growth is welcome, but if it does not reach the poorest, it will be meaningless,” Matta said during a panel discussion.
According to the World Bank, persistent inflation, weak competition in key sectors and uneven fiscal spending across states are major obstacles preventing economic recovery from translating into real benefits for ordinary Nigerians.
Matta pointed out that although subnational governments now control significant financial resources, spending priorities do not always reflect citizens’ most pressing needs, particularly in areas such as education, healthcare and social protection.
She explained that policy attention must shift beyond headline growth figures to focus on reducing inflation, improving the quality of public spending and expanding effective social protection programmes that directly support vulnerable households.
The World Bank also emphasised the importance of deeper structural reforms, including support for private sector-led growth and stronger domestic savings, noting that monetary policy alone cannot bridge the gap between economic stability and improved living standards.
Matta further warned that the approaching election season poses a risk to recent gains if fiscal discipline and reform momentum are weakened. She cautioned that any policy complacency could quickly reverse the progress already achieved.
Highlighting long-term priorities, she called for increased investment in human capital, especially early childhood education, primary healthcare and vocational training, describing them as critical to unlocking Nigeria’s demographic potential and boosting productivity.
The warning comes at a crucial time as Nigeria seeks to consolidate economic reforms, attract private investment and strengthen its financial system, while still grappling with widespread poverty affecting millions across the country.
