The World Bank has cautioned that Nigeria’s economic growth, despite showing early signs of recovery, remains fragile and may fail to improve living standards for millions of citizens without deliberate and targeted policies to reduce poverty.

The warning was issued by Dr Samer Matta, the World Bank’s Senior Economist for Nigeria, during the Nigeria Economic Summit Group 2026 Macroeconomic Outlook presentation held in Lagos.

Matta stressed that macroeconomic stabilisation on its own is not enough to enhance household welfare, noting that growth figures must translate into tangible benefits for ordinary Nigerians.

Speaking during a panel discussion at the event, she said: “Growth is welcome, but if it does not reach the poorest, it will be meaningless’’.

According to the World Bank, persistent inflation, limited competition in key markets and uneven fiscal spending across states continue to undermine the ability of economic recovery to deliver real gains for the population.

Matta noted that subnational governments now control substantial revenues, yet spending patterns often fail to align with the immediate needs of citizens, particularly in critical sectors such as education, healthcare and social protection.

“Policy focus must go beyond aggregate growth figures. Reducing inflation, improving the quality of spending, and implementing social protection programs are essential to ensure that economic gains reach households,” she added.

She further highlighted the importance of structural reforms, including support for private sector-led growth and stronger domestic savings, as key pillars for sustaining economic consolidation.

“Monetary policy alone cannot close the gap between macro stability and living standards. We need coordinated fiscal, structural, and social measures to ensure inclusive growth,” Dr Matta said.

On potential risks to the recovery, the World Bank identified the upcoming election year as a critical period that could threaten progress if fiscal discipline and sound policy implementation are weakened.

“Complacency now could quickly erode the hard-won macroeconomic gains,” she cautioned.

Matta also underscored the need for increased investment in human capital, stressing that prioritising early childhood education, primary healthcare and vocational training is essential to unlocking Nigeria’s demographic dividend and boosting long-term productivity.

The World Bank’s warning comes at a crucial moment as Nigeria seeks to consolidate economic reforms, strengthen its financial sector and attract private sector investment, while still confronting the persistent challenge of widespread poverty affecting millions across the country.