By Majeed Salaam
Nigeria will remain classified as a lower-middle-income economy in the World Bank’s 2027 fiscal year classification, maintaining its position within a category that reflects a gross national income (GNI) per capita range of $1,176 to $4,635.
The classification was contained in the World Bank’s latest income update, which groups economies based on their 2025 GNI per capita calculated using the Atlas method.
The Atlas methodology applies a three-year average exchange rate system designed to reduce the impact of currency fluctuations and provide more consistent comparisons of income levels across countries.
According to the World Bank, economies with GNI per capita of $1,175 or less are classified as low-income countries, while lower-middle-income economies fall between $1,176 and $4,635. Upper-middle-income countries have GNI per capita ranging from $4,636 to $14,375, while economies above $14,375 are classified as high-income countries.
Nigeria’s continued classification as a lower-middle-income economy places it alongside other African countries including Ghana, Kenya, Côte d’Ivoire, Senegal, Cameroon, Angola and Zambia.
The World Bank also classified Nigeria as a “blend country”, meaning the country remains eligible for financing support from both the International Development Association (IDA), which provides concessional financing to poorer economies, and the International Bank for Reconstruction and Development (IBRD), which supports middle-income and creditworthy developing countries.
Across Africa, the latest classification showed different movements in economic status. Cabo Verde moved from lower-middle-income to upper-middle-income status, while Togo advanced from low-income to lower-middle-income classification.
However, Namibia experienced a downgrade from upper-middle-income to lower-middle-income status.
Seychelles remains Africa’s only high-income economy, while South Africa, Botswana, Mauritius, Gabon, Cabo Verde and Equatorial Guinea are among the continent’s upper-middle-income economies.
Nigeria’s position in the lower-middle-income category has remained unchanged since 2010, following its transition from low-income status.
The classification, which is updated annually, serves as an important benchmark for development institutions, investors and policymakers. It influences access to development financing, provides indicators of economic progress and enables comparisons of income levels across countries.
While Nigeria has maintained its current classification, the federal government has continued to pursue economic reforms aimed at improving productivity, strengthening macroeconomic stability and increasing export diversification.
The government’s reform agenda includes changes in fiscal policy, monetary management and foreign exchange operations, with the objective of attracting investment, improving economic efficiency and creating conditions for sustained growth.
The challenge for Nigeria remains translating these reforms into higher productivity, stronger incomes and improved living standards that can support movement into a higher income category.
Economic analysts have noted that achieving an upward shift in income classification requires more than nominal economic growth. It depends on sustained improvements in per capita income, industrial capacity, employment creation, infrastructure development and overall economic competitiveness.
As Nigeria works towards its long-term ambition of becoming a more productive and diversified economy, maintaining lower-middle-income status provides both a measure of progress and a reminder of the structural reforms still required to reach the next stage of development.
