The International Monetary Fund (IMF) has revised Nigeria’s projected real GDP growth to 3.4% this year, indicating a brighter prospect for the nation’s economic performance.
The latest forecast by the Washington D.C based multilateral finance institution is contained in the conclusion of its 2025 Article IV consultation with Nigeria, a regular review of a country’s economic performance and policies.
The IMF in a statement on Wednesday indicated Nigeria’s economic growth was expected to be primarily driven by increased oil and gas output, the start-up of a new domestic refinery, and a robust services sector.
It projected: “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 Fund also noted that the Nigerian authorities had implemented major reforms over the past two years, which have improved macroeconomic stability and enhanced resilience.
Specifically, it stated that “the authorities have removed costly fuel subsidies, stopped monetary financing of the fiscal deficit and improved the functioning of the foreign exchange market.”
Based on the latest report, the Fund expected the nation’s headline inflation rate to continue to decelerate in the medium term based on the sustained tight macroeconomic policies and an expected easing in retail fuel prices.
It clarified: “Inflation should decline further in the medium-term with continued tight macroeconomic policies and a projected easing of retail fuel prices.”
It would be recalled that Nigeria’s real GDP growth accelerated to 3.4% in 2024, driven mainly by increased hydrocarbon output and a vibrant services sector.
Experts believe that the latest IMF’s forecast is a positive development for Nigeria’s economy, given the sundry challenges the country had been facing challenges in recent years.
