Mathew Verghis has only been in the role a matter of weeks, appointed World Bank country director for Nigeria in July 2025, but he is already speaking plainly about what the country is leaving on the table. The Indian national brings more than two decades of economic policy experience to Lagos and Abuja, having joined the World Bank in 1999 and worked across Africa, East Asia, Europe, and Central Asia before his most recent post as Regional Practice Director for Prosperity in the South Asia Region.
When asked whether Nigeria is growing at its potential, Verghis does not mince words. Current forecasts sit somewhere between 4% and 4.5% annual GDP growth, and while the 4.5% recorded in the second quarter was the best performance Nigeria had seen in a decade, he calls it simply not enough. His target is 7% to 8% growth per year, and he says there is no reason Nigeria cannot get there. What he also says, with equal candour, is that there are very real reasons why that level is not being achieved right now.
A big part of his answer points to the banking sector. Verghis argues that Nigerian banks must be allowed to play their full role in driving growth, and he ties that directly to the ongoing banking recapitalization exercise. In his view, a decade of policy choices left banks undercapitalized, making the current round of recapitalization not optional but necessary.
All of this sits against the backdrop of Nigeria's stated ambition to become a trillion-dollar economy by 2031. Whether the banking reforms can help close the gap between 4.5% and 8% in time is the question worth watching.
Originally published by African Business.