IMF Boosts Nigeria's Economic Growth Outlook Amid Rising Investor Confidence

Table of Contents

• IMF Upgrades Nigeria's Economic Growth Projection
• Revised Growth Figures
• Factors Influencing Growth
• Confidence in Economic Recovery
• Central Bank Governor Update

The International Monetary Fund (IMF) has revised Nigeria’s economic growth forecast, projecting a 3.9 percent expansion in 2025 and 4.2 percent in 2026 for Africa’s largest economy.

The Fund also anticipates that the Nigerian economy will grow by 4.2 percent in 2026, an increase from the 3.2 percent it predicted in July.

The updated figures were revealed on Tuesday during the launch of the World Economic Outlook (WEO) 2025 at the ongoing World Bank and IMF Annual Meetings in Washington, D.C.

This updated projection positions Nigeria ahead of South Africa, although it remains slightly below the overall Sub-Saharan African regional average.

“While growth in Nigeria is revised upward due to supportive domestic factors such as increased oil production, enhanced investor confidence, and a favorable fiscal stance in 2026, along with limited exposure to higher US tariffs, many other economies are experiencing significant downward revisions due to the evolving international trade and official aid landscape,” the IMF noted.

“This marks an improvement compared to the July WEO Update; however, it is cumulatively 0.2 percentage points lower than forecasts made prior to the policy changes in the October 2024 WEO. The slowdown reflects challenges from uncertainty and protectionism, even though the tariff impact is less severe than initially projected.”

In its July 2025 update, the IMF had estimated Nigeria’s growth at 3.4 percent, but the latest report indicates a 0.5 percentage point increase, signaling renewed confidence in the country’s reform-driven economic recovery.

DAILY POST reported that the Governor of the Central Bank of Nigeria has confirmed that the country’s Minister of Finance, Wale Edun, is unwell.