* Says Africa Economy Growth To Expand By 4.1% In 2025, 4.4% In 2026
NKECHI NAECHE-ESEZOBOR—(WASHINGTON DC)— The International Monetary Fund (IMF) has upgraded Nigeria’s 2025 economic growth forecast to 3.9 percent, citing stronger domestic fundamentals, improving investor confidence, and the limited impact of global tariff tensions on the country’s economy.
The latest projection, announced on Tuesday in the IMF’s October 2025 World Economic Outlook (WEO) titled “Global Economy in Flux”, represents a 0.5 percentage point increase from its July 2025 update, and nearly one percentage point higher than its April forecast.
According to the IMF, Nigeria’s real Gross Domestic Product (GDP) is now projected to grow by 3.9 percent in 2025, slightly below the 4.1 percent growth recorded in 2024, before accelerating to 4.2 percent in 2026.
Deniz Igan, IMF’s division chief, research department, said: “We revised upward the growth rate for Nigeria to 3.9 percent — this is 0.5 percentage point higher than before,” the Fund said. “The 2026 projection has also been upgraded by 0.9 percentage point to 4.2 percent, while the 2024 growth number was revised upward to 4.1 percent — 0.7 percentage point higher than earlier.”
The IMF attributed the stronger performance in 2024 to GDP revision and rebasing by Nigerian authorities, which broadened coverage of the economy, including informal sector activities.
It added that the 2025 and 2026 upgrades reflect reduced uncertainty, limited exposure to U.S. tariffs, and improved macroeconomic stability.
“Since July, we’ve seen the exchange rate appreciate, financial conditions strengthen with rising industrial confidence, and continued fiscal support,” the IMF explained. “Higher oil production, supported by improved security, also contributed to the upward revisions.”
