The World Bank has once again classified Nigeria as a lower-middle-income economy, placing it behind war-torn Libya and Gabon in its 2025/2026 country income report.

While Nigeria retained its lower-middle-income status, countries such as Algeria, Botswana, Equatorial Guinea, Libya, Gabon, Mauritius and South Africa were ranked higher among upper-middle-income economies.

According to the World Bank, lower-middle-income economies are those with a Gross National Income (GNI) per capita between $1,136 and $4,495. Upper-middle-income countries fall within the $4,496–$13,935 range, while low-income economies have a GNI per capita of $1,135 or less.

The Bank said the classifications serve as a guide for policymaking and economic development.

“These income categories offer insight into global economic progress and should inform national development strategies,” the report noted.

Nigeria also appeared on the list of fragile and conflict-affected countries, alongside Yemen, Gaza, Sudan, Somalia and others. However, it was not included among heavily indebted poor countries.

The report highlighted regional progress over time. In Sub-Saharan Africa, low-income countries declined from 75% in 1987 to 45% in 2024, with only Seychelles achieving high-income status. In contrast, Latin America now has no low-income countries.

Namibia was the only country downgraded in 2024, moving from upper- to lower-middle-income due to slower GDP growth and a sharp decline in mining activity.

The World Bank said the income thresholds were adjusted for inflation using the IMF’s Special Drawing Rights (SDR) deflator. However, the appreciation of the US dollar in 2024 led to a slight reduction in the thresholds.