11
The World Bank has commended Nigeria’s economic reform efforts, following a sharp increase in private capital inflows from $300 million in 2023 to nearly $6 billion in 2026.
The World Bank Group President, Ajay Banga, gave the commendation during a meeting with the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, in Bangkok, Thailand, on Monday, October 12, 2026.
The meeting was held on the sidelines of the 2026 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group.
Discussions focused on Nigeria’s reform progress and strategies for translating improved macroeconomic stability into faster economic growth, increased private investment and stronger domestic revenue generation.
The participants also explored ways Nigeria could leverage the World Bank’s guarantee instruments to unlock infrastructure financing and attract additional private capital into the domestic economy.
Speaking at the meeting, Oyedele highlighted Nigeria’s improving economic growth and disclosed that the country’s tax-to-gross domestic product (GDP) ratio had risen from about seven per cent to 12.5 per cent.
According to the minister, the improvement would enhance the government’s capacity to finance public investments without resorting to deficit monetisation.
He identified power infrastructure and human capital development as priority areas requiring sustained public investment to strengthen business competitiveness, improve productivity and create jobs.
Oyedele said the engagement was part of the Federal Government’s efforts to consolidate the gains of ongoing economic reforms and attract fresh investments through partnerships with international development institutions.
He added that Nigeria’s priority was to translate improved economic fundamentals into productive investments, employment opportunities and better living standards for citizens.
The meeting also underscored the importance of improving the efficiency of public spending to ensure that government expenditure delivers measurable economic and social benefits.
Private capital inflows are funds brought into a country by private investors through investments such as portfolio holdings, business ventures and other financial transactions.
An increase in such inflows can signal improved investor confidence, although the long-term benefits depend on the nature, stability and productive use of the investments.
Nigeria has pursued economic reforms aimed at improving macroeconomic stability, strengthening public revenue and creating a more attractive environment for investment.
The challenge however remains translating these gains into reliable electricity, stronger infrastructure, sustainable job creation and improved living conditions for citizens.
