The World Bank has advised Nigeria and other Sub-Saharan African countries to urgently address their increasing unemployment issues or risk higher poverty and social tension. The advice was contained in the latest edition of Africa’s Pulse, the Bank’s bi-annual economic briefing released on Tuesday in Washington.
The report projects Sub-Saharan Africa’s growth to rise modestly from 3.5 per cent in 2024 to 3.8 per cent in 2025, supported by moderating inflation and a modest recovery in investment. However, the World Bank said that underlying this growth is a deeper concern speeding up unemployment amidst rapid population growth.
World Bank Chief Economist for the Africa Region, Andrew Dabalen, pointed out that over the next 25 years, the region’s working-age population will swell by more than 600 million people. “The challenge will be to match this rising population with more and better jobs, as currently only 24 per cent of new entrants into the labor force find wage-paying jobs. A structural transformation to have more medium and large firms is necessary to create wage jobs at scale,” Dabalen stated.
Though noting that inflationary pressures are gradually easing, the report stated that Nigeria’s inflation remains elevated at 20.12 per cent. Across the region, the number of countries with double-digit inflation has fallen from 23 in October 2022 to 10 by July 2025, an indication of some movement towards price stability.
Nonetheless, the World Bank alerted that the region still grapples with significant risks such as increasing debt burdens, uncertainty in global trade, and weakening investor confidence. External debt servicing has increased more than twofold over the last ten years, hitting 2 per cent of GDP in 2024. The Sub-Saharan African countries in or at high risk of debt distress have almost tripled from eight in 2014 to 23 in 2025.
While there was the slight progress in growth, the rate remains too slow to make a significant difference in poverty or to generate enough good jobs for the continent’s expanding labour force. Africa, the report continued, is undergoing the world’s largest and quickest demographic transition, a challenge as much as an opportunity.
To fix this, the World Bank recommended policy priorities for private sector growth and large-scale job creation. It urged governments to lower the cost of doing business, improve infrastructure in energy, transport, and digital sectors, and invest in skills development and human capital. Strengthening governance and institutions, the report added, would also promote stability and attract sustainable private investment.
The report identified priority growth sectors like agribusiness, mining, tourism, healthcare, housing, and construction as engines of jobs. “For every job created in tourism, an additional 1.5 jobs are created in supporting sectors. With the right reforms and investment, Sub-Saharan Africa can tap its vast employment potential and set a path towards inclusive and sustainable growth,” the report said.
