The African Development Bank (AfDB) has projected that Nigeria and other West African economies will maintain stable economic growth of 4.7 per cent in 2026.
The projection is contained in the 2026 African Economic Outlook released by the AfDB on Tuesday during the bank’s ongoing Annual Meetings in Brazzaville.
According to the report, the West African subregion recorded an estimated economic growth of 4.8 per cent in 2025.
The bank, however, projected that growth in the subregion would slow slightly to 4.5 per cent in 2027.
The report attributed the stable growth outlook to strong agricultural production and expanding agro-processing value chains across the region.
It also identified sustained public investments in energy, logistics and transportation infrastructure as major drivers of economic expansion.
According to the AfDB, increased mining and hydrocarbon production will further support growth across West Africa.
The report added that improved private sector investment, particularly in the construction sector, would contribute significantly to economic activities in the region.
Despite the positive outlook, the AfDB warned that rising global oil and gas prices were increasing inflationary pressures across Africa.
The bank projected Africa’s average inflation rate at 10.4 per cent in 2026 before moderating to 8.9 per cent in 2027.
It noted that inflation had declined from 13.7 per cent recorded in 2025, supported by increased agricultural output and tighter monetary policies implemented by central banks.
The report also stated that several African central banks reduced interest rates in 2025 to support economic recovery and improve inflation expectations.
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In addition, the AfDB noted that many African currencies had depreciated against the U.S. dollar as of April 2026.
The bank further warned that higher oil prices could widen fiscal deficits in oil-importing African countries due to rising import costs.
