 has downgraded Nigeria’s economic growth outlook for 2025, projecting a 3.0% growth){kind=link}
The International Monetary Fund (IMF) has downgraded Nigeria’s economic growth outlook for 2025, projecting a 3.0% growth rate—0.2 percentage points below its previous estimate of 3.2%.
The adjustment stems from declining global crude oil prices, which continue to be a critical component of Nigeria’s economic performance.
This revision was detailed in the IMF’s April 2025 World Economic Outlook (WEO), unveiled in Washington, DC, during the ongoing Spring Meetings of the IMF and World Bank.
The report explores global and regional economic developments, emphasizing the fragility of oil-reliant economies.
Across sub-Saharan Africa, the IMF anticipates a dip in economic growth as well, with projections slipping from 4.0% in 2024 to 3.8% in 2025.
A moderate rebound is expected in 2026 when growth is forecast to climb to 4.2%.
Nigeria, identified as the continent’s largest economy, was notably impacted by the global oil price slump.
The IMF also revised Nigeria’s 2026 growth projection downward by 0.3 percentage points.
Similar economic pressures were reported in other African nations. In South Africa, the IMF lowered its 2025 and 2026 growth forecasts by 0.5 and 0.3 percentage points respectively.
These revisions reflect diminished economic momentum after a slow 2024, rising global uncertainty, a shift toward protectionist policies, and broader signs of a global economic deceleration.
The most dramatic adjustment was observed in South Sudan, where the IMF cut the 2025 growth forecast by a staggering 31.5 percentage points.
This sharp decline is attributed to setbacks in oil production due to a damaged pipeline, significantly affecting the country’s revenue and export potential.