Nigeria estimates its economy will grow between 2.5% and 3% this year, Central Bank Governor Godwin Emefiele said on Tuesday, after an easing of lockdown measures and increased vaccinations boosted business, including international and local travel.

Africa's largest economy had contracted in 2020 due to the coronavirus pandemic, though in the fourth quarter it managed to exit its recession, the second since 2016, and growth has now increased for three consecutive quarters to June 30. The economy expanded by 5% in the second quarter of this year.

"With continued improvements in the economy, I am optimistic... we would end the year with an annual GDP growth of between 2.5–3.0 percent," Emefiele told a banking conference.

Nigeria had been grappling with low growth before the Covid-19 pandemic triggered a recession and created large financing gaps, including dollar shortages and inflation.

Amid a third wave of infections, Nigeria has started a second phase of inoculating its 200-million citizens after it received a donation of 4-million doses of the Moderna vaccine from the US government.

"Notwithstanding the positive news ... I would admit that growth remains fragile. We are not out of the woods yet, given the challenges in combating the Covid-19 pandemic," Emefiele said.