Nigeria’s economy is on a steady recovery path, with the International Monetary Fund (IMF) projecting a growth rate of 4.4% in 2026, slightly up from 4.2% in 2025. The increase is attributed to recent government reforms aimed at stabilizing public finances and boosting macroeconomic stability, while encouraging expansion in the country’s services sector, including telecommunications, financial services, and trade.
The forecast, detailed in the IMF’s January 2026 World Economic Outlook (WEO) Update, highlights the positive impact of policy adjustments designed to restore investor confidence after years of economic strain caused by high inflation, currency volatility, and weak oil output. The report was announced ahead of a hybrid press conference hosted by the National Bank of Belgium in Brussels.
Across sub-Saharan Africa, the IMF expects economic growth to strengthen from 4.4% in 2025 to 4.6% in 2026 and 2027. This regional improvement is driven by easing inflationary pressures, better fiscal discipline, and structural reforms in several large economies, suggesting a more resilient growth trajectory for the continent.
Globally, the IMF predicts steady growth despite a slowdown in high-technology sectors that had previously powered post-pandemic recovery. Global expansion is forecast at 3.3% in 2026 and 3.2% in 2027, with emerging and developing economies like Nigeria playing a key role in driving overall growth. However, the Fund warns that geopolitical tensions, tariffs, and policy uncertainties could pose risks to this outlook.
The WEO Update emphasizes that while reform momentum is helping Nigeria and other emerging markets recover, resilience remains uneven and concentrated in specific sectors. Continued government reforms, domestic demand growth, and services sector expansion are expected to support Nigeria’s path toward sustainable economic recovery in the coming years.
source: The sun