The International Monetary Fund (IMF) has revised its economic growth projection for Nigeria, forecasting a 3.9 percent expansion in 2025 and 4.2 percent in 2026. This upgrade places Nigeria ahead of South Africa but slightly below the broader Sub-Saharan African regional average. The revised figures were announced during the launch of the World Economic Outlook 2025 at the ongoing World Bank and IMF Annual Meetings in Washington, D.C.

According to the IMF, Nigeria’s economic growth is expected to be driven by supportive domestic factors, including higher oil production, improved investor confidence, and a supportive fiscal stance in 2026. The country’s limited exposure to higher US tariffs has also contributed to the upward revision. In contrast, many other economies have seen significant downward revisions due to the changing international trade and official aid landscape.

The IMF’s updated projection represents a 0.5 percentage point increase from its July 2025 update, when it forecast Nigeria’s growth at 3.4 percent. This upgrade signals renewed confidence in the country’s reform-driven economic recovery. The Nigerian economy is expected to benefit from improved investor confidence, which has been boosted by the government’s efforts to implement economic reforms.

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, led the Nigerian delegation to the IMF-World Bank meetings, while the country’s Minister of Finance, Wale Edun, was absent due to illness. The IMF’s revised forecast is a positive development for Nigeria, which has been working to diversify its economy and reduce its dependence on oil exports.

The upgrade is also a testament to the country’s efforts to improve its business environment and attract foreign investment. With a population of over 200 million people, Nigeria is the largest economy in Africa and a key player in the region. The IMF’s revised forecast suggests that the country is on track to achieve sustained economic growth, which could have positive implications for the region as a whole.