IMF forecasts 3.4% economic growth for Nigeria in 2025

The International Monetary Fund (IMF) has projected a 3.4% expansion in Nigeria’s real Gross Domestic Product (GDP) for 2025.

This marks a positive outlook for the country’s economic growth.

This forecast is contained in the IMF’s conclusion of the 2025 Article IV consultation with Nigeria posted on its website Wednesday.

Article IV consultation is a regular review of a country’s economic performance and policies. The country’s growth accelerated to 3.4% in 2024, driven mainly by increased hydrocarbon output and a vibrant services sector.

The IMF’s forecast is a positive development for Nigeria’s economy, which has been facing challenges in recent years.

The Fund said Nigeria’s economic growth is expected to be driven by increased hydrocarbon output, the start-up of a new domestic refinery, and a robust services sector.

The IMF also noted that the Nigerian authorities have implemented major reforms over the past two years, which have improved macroeconomic stability and enhanced resilience.

“Real GDP is expected to expand by 3.4 percent in 2025, supported by the new domestic refinery, higher oil production and robust services,” the IMF stated.

“The authorities have removed costly fuel subsidies, stopped monetary financing of the fiscal deficit and improved the functioning of the foreign exchange market,” the IMF said.

Expectedly, the Bretton Wood Institute said inflation rates will continue to trend downwards in the medium term, citing sustained tight macroeconomic policies and an expected easing in retail fuel prices.

“Inflation should decline further in the medium-term with continued tight macroeconomic policies and a projected easing of retail fuel prices.”