Nigeria’s economic outlook is improving despite high inflation and weak early childhood development outcomes, the World Bank has said.
The World Bank Country Director for Nigeria, Matthew Verghis, said this in Abuja on Tuesday, while presenting the bank’s 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”.
The country director said the report’s spotlight focused on early childhood development, describing it as the most critical investment Nigeria must prioritise to achieve high-income status and a more inclusive society.
According to him, during the period from pregnancy to about five years, children’s brain development is most rapid and most sensitive to nutrition, health stimulation, early learning, and safety.
“Investments during these early years yield strong returns, estimated at between seven and 13 per cent annually, through better learning outcomes, higher earnings, lower health costs and stronger social cohesion,” he said.
He, however, said that Nigeria’s early childhood indicators remained weak and uneven across regions and global standards.
“On average, 110 out of every 1,000 children die before the age of five; about 40 per cent are stunted, while an estimated 52 per cent are not developmentally on track before entering school,” he said.
Mr Verghis attributed the situation to gaps in access to basic services, including maternal healthcare, nutrition, clean water, and sanitation.
He said that the challenges were more severe among poorer households and in the northern parts of the country.
“These figures should be treated as a crisis for a country with Nigeria’s aspirations,” he said.
He acknowledged ongoing government efforts, supported by the World Bank and other partners, to improve child health and nutrition, including strengthening primary healthcare systems.
He emphasised the need to integrate these interventions into a coordinated, child-centred framework that supports families from pregnancy through age five.
Mr Verghis said efforts were underway, in collaboration with the National Economic Council and state governments, to develop a comprehensive national programme on early childhood development.
He said that the initiative was being supported by development partners, including the World Bank and the Gates Foundation.
According to him, aligning policies, strengthening coordination, and scaling interventions will be critical to improving outcomes for Nigerian children.
He reaffirmed the World Bank’s commitment to supporting Nigeria in prioritising early childhood development as a foundation for sustainable growth and improved quality of life.
While giving an overview of the report, Fiseha Haile, World Bank’s Lead Economist for Nigeria, said the outlook for Nigeria’s economy remained cautiously optimistic.
“Growth is projected at 4.2 per cent over 2026 to 2028, supported by continued macroeconomic stabilisation, ongoing structural reforms, and increased investment.
“Nigeria’s external position remains positive, while ongoing reforms are yielding results.”
Mr Haile, however, said that rising global uncertainty, particularly the ongoing Middle East conflict, posed risks to the economy.
He said that inflation continued to erode purchasing power, stressing the need for structural measures such as reducing trade barriers and supporting vulnerable populations through cash transfers.
Mr Haile said Nigeria needed to reduce inflation in a sustainable way while promoting inclusive economic growth so citizens can feel the benefits of ongoing reforms.
He said that there was a need for fiscal discipline, while maintaining a tight monetary and FX policy and ensuring market reforms.
“The government needs to save part of oil windfalls, treat them as temporary, and use targeted social support instead of inefficient blanket subsidies.
“It needs to improve market efficiency by restoring competition in the fuel sector, reopening imports, reducing tariffs, and removing import bans to lower production costs.”
(NAN)
