The World Bank has said Nigeria’s economic outlook is showing signs of improvement, even as inflation remains high and early childhood development indicators stay weak.
The World Bank Country Director for Nigeria, Matthew Verghis, said this on Tuesday in Abuja during the presentation of the April edition of the Nigeria Development Update (NDU) report.
The report is titled “Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development.” It highlights the need for urgent investment in early childhood as a foundation for long-term national development.
Verghis explained that the period from pregnancy to about five years of age is the most critical stage of human development, as rapid brain growth during this time is strongly influenced by nutrition, healthcare, stimulation, early learning, and safety.
He said investments in early childhood development deliver strong returns, estimated at between seven and 13 per cent annually, through better learning outcomes, higher lifetime earnings, reduced health costs, and improved social stability.
However, he noted that Nigeria’s early childhood development indicators remain weak and uneven across regions when compared with global standards.
According to him, about 110 out of every 1,000 Nigerian children die before the age of five, while around 40 per cent suffer from stunted growth. He also said about 52 per cent are not developmentally ready before starting primary school.
Verghis attributed the situation to gaps in access to essential services such as maternal healthcare, nutrition, clean water, and sanitation, adding that the problem is worse among low-income households and in northern Nigeria.
He described the situation as a serious concern that Nigeria must urgently address if it is to achieve its development goals.
He added that the World Bank is working with the Federal Government, state governments, the National Economic Council, and partners including the Gates Foundation to develop a coordinated national programme on early childhood development.
He stressed the need for a unified, child-centred framework that supports children from pregnancy through the early years of life.
Also speaking, World Bank Lead Economist for Nigeria, Fiseha Haile, said the country’s economic outlook remains cautiously positive, with growth projected at 4.2 per cent between 2026 and 2028.
He said the projection is supported by ongoing macroeconomic stabilisation, structural reforms, and improved investment inflows.
However, he warned that global uncertainties, including geopolitical tensions, could pose risks to the economy.
Haile also said inflation continues to reduce the purchasing power of Nigerians, stressing the need for structural reforms such as reducing trade barriers and expanding targeted social protection through cash transfers for vulnerable citizens.
According to him, Nigeria must ensure inflation is brought down sustainably while making sure growth benefits ordinary citizens. He further called for fiscal discipline, tighter monetary and foreign exchange policies, and continued market reforms.
“The government needs to save part of oil windfalls, treat them as temporary, and deploy targeted social support instead of inefficient blanket subsidies,” he said.
He also recommended improved market competition, particularly in the fuel sector, alongside reduced tariffs and the removal of import restrictions to lower production costs.
(NAN)