IMF Raises Nigeria’s 2025 Economic Growth Forecast to 3.4%, Cites Oil and Services Sector Recovery
Reporters: Okafor Joseph and Rita Uzuh, Senior Reporters, SpringnewsNG Media Limited
The International Monetary Fund (IMF) has upgraded Nigeria’s economic growth projection for 2025 to 3.4 percent, reflecting improved performance in oil production and the services sector. The new forecast marks a significant rise from the April 2025 estimate and signals cautious optimism for Africa’s largest economy.
According to the July 2025 World Economic Outlook (WEO) report released by the IMF, Nigeria’s economy is also projected to grow by 3.2 percent in 2026, an increase of 0.5 percentage points from the previous forecast of 2.7 percent.
The IMF’s report further indicated that global economic growth is expected to reach 3.0 percent in 2025 and 3.1 percent in 2026, representing slight upward revisions of 0.2 and 0.1 percentage points, respectively.
In Sub-Saharan Africa, economic growth is projected to hit 4.0 percent in 2025 and rise to 4.3 percent in 2026, reflecting a modest increase from the April projections of 3.8 and 4.2 percent. The IMF highlighted that regional growth would remain stable in 2025 before accelerating the following year.
Financial experts have linked Nigeria’s improved outlook to stronger oil output and resilience in the services sector. Tunde Abidoye, Head of Equity Research at FBNQuest Merchant Bank, noted:
“The IMF’s forecast of 3.4 percent aligns with our in-house estimates derived from the National Bureau of Statistics data. The upward revision likely reflects improved oil production and robust services performance. However, the modest growth rate suggests Nigeria still faces challenges in addressing poverty and stimulating broad-based economic expansion.”
With the latest IMF upgrade, analysts believe Nigeria’s economy may experience modest recovery, though structural reforms and non-oil sector growth remain key to achieving sustainable development.
