World Bank retains Nigeria’s lower-middle income status for 2027 economy classification

The World Bank has retained Nigeria’s lower-middle income classification for its 2027 fiscal year.

 

This places Nigeria within the income group for economies with a gross national income (GNI) per capita of between $1,176 and $4,635.

 

The development was contained in the World Bank’s latest income classification update, which groups economies based on their 2025 GNI per capita calculated using the Atlas method.

 

The Atlas method uses a three-year average of exchange rates to reduce the impact of currency volatility and allow for more consistent comparisons across countries.

 

 

According to the multilateral, low-income economies are those with a GNI per capita of $1,175 or less, while lower-middle income economies have a GNI per capita ranging from $1,176 to $4,635.

 

The organisation defines upper-middle-income economies as those with a GNI per capita of $4,636 to $14,375, while high income economies have a GNI per capita of more than $14,375.

 

The Washington-based institution classified Nigeria as a lower-middle income economy and a ‘blend country’, meaning it is eligible for financing from both the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD).

 

 

African countries such as Ghana, Kenya, Côte d’Ivoire, Senegal, Cameroon, Angola, and Zambia are also categorised as lower-middle income countries.

 

Among the upper-middle-income African economies are South Africa, Botswana, Mauritius, Gabon, Cabo Verde, and Equatorial Guinea.

 

Seychelles stands as the continent’s sole high-income economy, according to the World Bank report.

 

The most recent classification led to varying changes in economic status across Africa.

 

 

Cabo Verde’s classification improved from a lower-middle income economy to an upper-middle-income economy, and Togo advanced from the low income to the lower-middle income category.

 

Conversely, Namibia experienced a reclassification from upper-middle income to lower-middle-income status.

 

The lender said the updated thresholds apply to the 2027 fiscal year and are based on countries’ 2025 income data adjusted using the Atlas methodology, which smooths exchange rate fluctuations to enable more consistent cross-country comparisons.

 

The income classification is updated annually and is widely used by development institutions, investors, and policymakers to determine countries’ eligibility for concessional financing, assess development progress, and facilitate cross-country comparisons.

 

 

Nigeria has remained a lower-middle-income economy since 2010. Prior to this, the country had been a low-income country.

 

The federal government has introduced a flurry of economic reforms in a push to change the country’s economic status by boosting productivity and diversifying exports.

 

 

The country is also implementing fiscal, monetary, and foreign exchange reforms aimed at strengthening macroeconomic stability and attracting investment.

  

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