*Despite country’s celebrated reforms
The International Monetary Fund (IMF) has downgraded Nigeria’s economic growth forecast for 2025 to 3.0 per cent, representing a 0.2 percentage point reduction from its earlier projection of 3.2 per cent.
The Fund, however, projects a 2.7 per cent growth rate for the country in 2026.
“The growth forecast for Nigeria is revised downward by 0.2 percentage point for 2025 and 0.3 percentage point for 2026, owing to lower oil prices,” the IMF said in its latest World Economic Outlook (WEO) report released on Tuesday.
It noted that while Nigeria faces significant challenges, particularly with inflation, forex volatility, and weak infrastructure, recent policy adjustments — such as the partial unification of exchange rates and the removal of fuel subsidies — could boost investor confidence and stimulate economic activity if properly implemented.
The IMF also highlighted similar economic pressures affecting other major African economies.
According to the report, growth in sub-Saharan Africa is expected to decline slightly from 4.0 per cent in 2024 to 3.8 per cent in 2025, before recovering modestly to 4.2 per cent in 2026.
“In South Africa, the growth forecast is revised downward by 0.5 percentage point for 2025 and 0.3 percentage point for 2026, reflecting slowing momentum from a weaker-than-expected 2024 performance, deteriorating sentiment due to heightened uncertainty, intensification of protectionist policies, and a deeper slowdown in major economies.
“South Sudan has a downward revision of 31.5 percentage points for 2025 due to delays in resuming oil production following damage to a key pipeline,” the report added.