The International Monetary Fund has revised Nigeria’s economic prospects upward, projecting stronger growth in 2026 as reforms begin to show measurable impact across key sectors of the economy.
The updated outlook reflects improved confidence in macroeconomic adjustments and a gradual stabilisation of structural fundamentals.
According to the IMF’s latest assessment, Nigeria’s gross domestic product is now expected to expand by 4.4 per cent in 2026, representing an improvement on earlier projections.
The Fund attributed the upward revision to enhanced policy coordination, recovering domestic demand, and stronger performance in non-oil activities.
Furthermore, the IMF noted that reforms in the foreign exchange market, alongside fiscal adjustments, are helping to restore investor confidence and reduce long-standing distortions.
An official familiar with the report said the revised forecast signals “growing optimism about Nigeria’s medium-term growth potential, provided reform momentum is sustained.”
The projection was contained in the IMF’s World Economic Outlook update, released as part of a broader review of global economic performance.
The report placed Nigeria among emerging economies expected to benefit from easing financial pressures and improved policy clarity over the medium term.
However, the Fund cautioned that risks remain.
It warned that inflationary pressures, insecurity, and global economic uncertainties could still weigh on growth if not effectively managed.
“Maintaining macroeconomic stability and accelerating structural reforms will be critical to achieving the projected expansion,” the IMF said.
Meanwhile, economic analysts say the revised forecast offers a positive signal for investors but stress that translating projections into real economic gains will depend on consistent policy execution.
They argue that sustained growth will require deeper reforms, stronger revenue mobilisation, and targeted support for productive sectors of the economy.