IMF raises Nigeria’s economic growth forecast to 4.2% — Premium Times Nigeria

The International Monetary Fund has raised its forecast for Nigeria’s economic growth in 2026 to 4.2%, while warning that rising prices for essential goods could worsen poverty and food insecurity. This was reported by Premium Times.

IMF forecast

The updated estimates are contained in the IMF’s 2026 World Economic Outlook report titled “Resilience Under Pressure, Urgent Choices.” The document was presented during the IMF and World Bank meetings in Bangkok, Thailand.

The fund linked the improved forecast for Nigeria to stronger macroeconomic stability and favorable changes in terms of trade. At the same time, the IMF noted that high prices for essential goods are expected to further aggravate poverty and food insecurity. The fund put the country’s economic growth forecast for 2027 at 4.3%.

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Reforms and regional dynamics

Nigeria introduced foreign exchange market reforms and abolished a subsidy regime that the government described as wasteful and conducive to corruption. International development institutions and financial organizations positively assessed these steps in terms of public finances. At the same time, the population expressed dissatisfaction over rising energy prices, the high cost of living, and inflationary pressure.

According to the IMF’s assessment, economic growth in sub-Saharan African countries will remain at 4.5% in 2026. The fund stressed that figures will differ significantly among countries due to differences in economic policy capacity, the pace of reforms, dependence on commodities, climate shocks, and access to external financing.

Growth in the rest of the region, according to the IMF forecast, will slow from 5.6% in 2025 to 5.5% in 2026 and 5.3% in 2027.