The International Monetary Fund (IMF) has revised Nigeria’s economic growth forecast upward, projecting a 3.4% GDP growth in 2025 and 3.2% in 2026, signaling cautious optimism amid persistent structural challenges.
The latest World Economic Outlook (WEO) report, titled “Global Economy: Tenuous Resilience amid Persistent Uncertainty,” was released yesterday. It marks a 0.4 percentage point increase from the IMF’s previous 2025 projection of 3.0%, and a 0.5 percentage point rise from the 2.7% forecast for 2026 as published in April.
The upward revision reflects improved investor sentiment and moderate recovery prospects in the Sub-Saharan Africa region. However, the IMF cautioned that the outlook remains fragile and called for urgent structural and institutional reforms, particularly across Sub-Saharan Africa.
Speaking on the updated projections, Bismarck Rewane, economist and Managing Director of Financial Derivatives Company Ltd, highlighted the critical role of energy infrastructure. He warned that persistent power outages could derail Nigeria’s economic momentum.
“If Nigeria does not resolve its power supply issues, economic growth may not be sustained,” Rewane stated.
The IMF echoed similar concerns in its WEO, identifying power deficits, inflationary pressures, weak institutions, and external debt vulnerabilities as key hurdles facing many African economies.
As Nigeria looks to capitalise on the revised growth forecast, experts stress the importance of energy reform, infrastructure development, and policy consistency to unlock long-term economic potential.
