With a population of about 173 million people, Nigeria is the largest country in Africa and accounts for 47% of West Africa’s population. It is also the biggest oil exporter in Africa, with the largest natural gas reserves in the continent. The challenging process of implementing reforms was revitalized through a Roadmap developed in 2010, which clearly outlines the government’s strategy and actions for implementing comprehensive power sector reforms to expand supply, open the door to private investment and address some of the chronic sector issues hampering improvement of service delivery. To date, over 10 generation and distribution companies were successfully privatized in 2014 while the transmission company was placed under a management contract awarded to a reputable international company selected on a competitive basis.

 Economic Outlook

Real gross domestic product (GDP) is estimated to have grown by 6.1% owing to continued strong performance mainly in services, but also industry (apart from oil mining) and agriculture. The oil sector was in decline, albeit at a slower rate than in the previous year. Oil and gas GDP was estimated to have declined by 1.3%, relative to a decline of 13.1% in 2013. The sharp decline in oil prices since the third quarter of 2014 has posed major challenges to the country’s external balance and public finances. Oil accounts for close to 90% of exports and roughly 75% of the country’s consolidated budgetary revenues. The GDP numbers indicate that telecommunications, real estate, manufacturing, construction, entertainment increased their shares of GDP.

Nevertheless, much lower oil prices will continue to pose strong challenges for public finance at all levels of government during the year, and will also represent a major constraint on the ability of the new federal government to launch some of its ambitious programs.

Political context

The fifth consecutive national elections held in March and April 2015 and won by an opposition party were considered as fair and relatively peaceful by national and international Election Monitors as compared to the post-election killings and destructions of 2011.The successful general elections in 2015 is largely credited to Independent National Electoral Commission (INEC) and the leadership of the Presidential candidates. The New Government is focusing on anti-corruption, Jobs and unemployment, the economy and Security.

Development Challenges

In the North East, Boko Haram remains a threat, and millions of displaced persons require assistance. There has been major destruction of infrastructure along with the loss of lives and impoverishment in this region. The new government will have a difficult time in the short term financing the major programs that it wants to roll out as well as reconstructing the North East devastated by the activities of insurgents

Accelerating the creation of productive jobs through private sector growth and improvements in education (skills) remains the major medium-term challenge. So far, the pace of job creation has been inadequate, leading to increasing frustration among underemployed Nigerian youth. 

Last Updated: Sep 30, 2015

Nigeria has recently become the largest economy in Africa following the rebasing of its national accounts and is well positioned to play a leading role on the continent and on the global scene. The country has enjoyed macro-economic stability and has been growing strongly, averaging 7% per year over the last decade. Despite this robust growth, poverty has remained significant with increasing inequality and regional disparities. The World Bank Group (WBG) has enjoyed a strong partnership with Nigeria, which has deepened significantly since the return to democratic rule in 1999. The new Country Partnership Strategy FY14-FY17 (CPS) and aims to support the implementation of the Government’s development plan. The CPS organizes the Bank’s interventions around three strategic clusters:

  • The federally-led structural reform agendas for growth and jobs: the agenda seeks to foster diversified growth and job creation by addressing two key constraints: power and access to finance; it targets agriculture as one of key drivers of economy, holding a strong promise of improving livelihoods in rural areas.
  • The Quality and Efficiency of Social Service Delivery at State Level: the CPS program will focus on developing more effective systems for social delivery (social protection programs, education, health, and water services delivery) to help address inequities in income and opportunities.
  • Governance and Public Sector Management: the CPS aims at strengthening public finance management and public investment management. It is hoped that savings gained from improved public sector efficiency will help efforts to promote inclusive growth. The CPS integrates gender, equity and conflict sensitivity as essential elements of governance.

Last Updated: Sep 30, 2015

The expected results from the implementation of the Country Partnership Strategy FY14-FY17 (CPS) are:

Federally-led Structural Reform Agendas for Growth & Jobs:

  • 16% increase in power generation capacity; 8% increase in transmission capacity.
  • Improved access of small farmers to inputs and technology, and increase in their average income.
  • 20,000 hectares of improved irrigation in Northern Nigeria; 2,800 hectares treated for erosion.
  • Improved road access for 2 million people in rural areas.
  • 100,000 loans to SMEs.
  • Increased supply of long term financing to the housing sector.

Improving the Quality and Efficiency of Service Delivery at the State-level:

  • 100,000 youth received orientation and life skills training.
  • Improved targeting of social protection and increased access of poor and vulnerable households to social and economic services.
  • Improved coverage and quality of health service delivery.
  • Increased number of teachers in rural areas; improved learning outcomes in benefitting schools.
  • 4 million people gained access to improved water supply.

Governance and Public Financial Management (PFM):

  • Enhanced transparency in budget execution in benefiting states and at the Federal level.
  • States having adopted the procurement law increased from 24 in 2013 to 30 in 2017

Last Updated: Sep 30, 2015

The partners currently include: African Development Bank (AFDB); Canadian International Development Agency (CIDA); European Union (EU); French Development Agency (AFD); Department for International Development (DfID); German Agency for International Development (GIZ); International Monetary Fund (IMF); Japan International Cooperation Agency (JICA); United States Agency for International Development (USAID); Bill & Melinda Gates Foundation; Embassy of Brazil; Embassy of China; High Commission of India; and the Agencies of the UN, particularly the UNDP, UNICEF and the World Bank Group (WBG). 

Last Updated: Sep 30, 2015


Nigeria: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments