By Abiola Olawale
The World Bank’s latest country income classification for the 2025/2026 fiscal year has ranked Nigeria’s position among Lower-Middle Income Economies (LMIEs), trailing behind conflict-ridden Libya and Gabon, which are ranked as Upper-Middle Income Economies (UMIEs).
This persistent ranking has raised concerns, particularly over Nigeria’s economic challenges despite recent reforms by the administration of President Bola Ahmed Tinubu.
According to the World Bank, Nigeria’s Gross National Income (GNI) per capita remains lower than $1,136, qualifying it as a lower-middle income economy.
In contrast, countries such as Libya, Gabon, Algeria, Botswana, Equatorial Guinea, Mauritius, and South Africa boast higher GNI per capita, placing them in the upper-middle income bracket ($4,496 to $13,935).
The World Bank Group said that its income classifications provide valuable insights into global economic trends and development progress.
The classification, based on 2024 data and updated annually on July 1, also highlighted Nigeria’s struggle to climb the economic ladder despite being Africa’s most populous nation and a major oil producer globally.
The New Diplomat reports that this comes amid ongoing reforms by the Tinubu administration. According to the administration, it has been implementing its economic reforms over the past two years, including what it called currency liberalization and the removal of fuel subsidies.
However, these efforts have yet to translate into significant economic advancement, according to the current data released by the World Bank.
This as Nigeria was also listed among countries in fragile and conflict affected situations alongside Yemen, Ukraine, Gaza, West Bank, Sudan, South Sudan, Somalia, Syria, Niger, Burkina Faso and Afghanistan, among others.
However, Nigeria was not included in the list of heavily indebted poor countries, which included Rwanda, Ghana, Gambia, Liberia, among others.
Part of the report reads: “As countries continue to evolve economically, these classifications will remain crucial for shaping development policies and strategies. Policy makers should consider these classifications when designing economic policies and strategies.
“Understanding the factors influencing income classification can guide efforts stimulating economic growth, help manage inflation, and enhance integration into the global economy.”
Globally, the World Bank’s report revealed that 3 per cent of countries in East Asia and the Pacific remained in the low-income category.
Europe and Central Asia had no low-income countries in both 1987 and 2024, although they had a slight decrease in high-income countries from 71 per cent to 69 per cent.
Low-income countries in Latin America and the Caribbean reduced from 2.0 per cent in 1987 to zero in 2024, while high-income countries increased from 9.0 per cent to 46 per cent.
However, low-income countries increased from two to three in the Middle East and North Africa, while high-income countries rose to 35 per cent. All countries moved from low-income in 1987 to lower-middle- and upper-middle-income by 2024 in South Asia.
In Sub-Saharan Africa, low-income countries decreased radically from 75 per cent to 45 per cent, with only one country, Seychelles, reaching high-income status.
