The International Monetary Fund (IMF) has raised Nigeria’s economic growth forecast for 2026 to 4.2 percent, citing improved macroeconomic stability and favorable trade conditions.
The revised projection was contained in the Fund’s October 2026 World Economic Outlook, titled Resilience Under Strain, Urgent Choices, released on Tuesday at the IMF and World Bank annual meetings in Bangkok, Thailand.
The new forecast represents a 0.1 percentage-point increase from the 4.1 percent projected in July. The IMF also projects Nigeria’s economy to grow by 4.3 percent in 2027.
Despite the improved outlook, the Fund warned that rising food and energy prices could worsen poverty and food insecurity in Nigeria.
The IMF projected sub-Saharan Africa’s economy to grow by 4.5 percent in 2026, while global growth is expected to reach 3.1 percent, supported partly by investment in artificial intelligence.
However, it cautioned that prolonged geopolitical tensions, higher commodity prices, and a possible correction in AI-related investments could weaken global growth and increase inflationary pressures.
The Fund urged governments to strengthen public finances, maintain price stability, and improve their resilience to future economic shocks.
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