Nigeria will remain a lower-middle income economy in the World Bank’s 2027 fiscal year classification, underscoring both the country’s economic progress and the challenges that still stand in the way of achieving a higher income status. The latest update from the Washington-based institution places Nigeria among economies with a Gross National Income (GNI) per capita ranging between $1,176 and $4,635, a category it has occupied for more than a decade.

The World Bank’s annual income classification, which is based on 2025 income data calculated using the Atlas methodology, is widely regarded as an important benchmark for investors, development partners, and policymakers. The Atlas method uses a three-year average of exchange rates to reduce the impact of currency volatility, allowing for a more stable and accurate comparison of economies around the world.

Beyond its income classification, Nigeria continues to hold its position as a “blend country,” making it eligible for financial support from both the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD). This status provides the country with access to a broader range of development financing options as it seeks to tackle infrastructure gaps, stimulate growth, and improve living standards for millions of citizens.

Across Africa, the latest World Bank update revealed a mixed economic picture. While countries such as Ghana, Kenya, Angola, Senegal, Cameroon, Côte d’Ivoire, and Zambia remain in the lower-middle income category alongside Nigeria, Cabo Verde recorded an upgrade to upper-middle income status, and Togo moved up from low income to lower-middle income. Namibia, however, moved in the opposite direction, slipping from upper-middle income to lower-middle income status.

For Nigeria, the classification serves as both a reminder of how far the country has come and how much work remains to be done. Since moving out of the low-income category in 2010, the nation has pursued a series of economic reforms aimed at boosting productivity, diversifying exports, stabilising the foreign exchange market, and attracting investment. As government efforts to strengthen macroeconomic stability continue, many stakeholders will be watching closely to see whether these reforms can eventually propel Africa’s largest economy into the upper-middle income bracket.

source: The cable