World Bank Warns High Fuel Prices May Slow Poverty Reduction in Nigeria
The World Bank projects that Nigeria’s economy will grow by 4.3% in 2026, up from an estimated 4.0% in 2025. It expects inflation to fall from 23.0% to 15.7% as monetary tightening, exchange-rate stability and improved supply conditions take effect. The bank said lower inflation could improve household purchasing power, but persistently high fuel prices linked to the Middle East conflict may continue to hurt low-income households and slow poverty reduction. It also warned that insecurity, climate shocks, oil-production disruptions and increased spending ahead of the 2027 elections could weaken economic reforms. The report added that Nigeria’s growing use of artificial intelligence could support economic activity, but unreliable electricity, limited internet access and high data and device costs may restrict the benefits.
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