The International Monetary Fund (IMF) has praised Nigeria’s ongoing economic stabilisation efforts, noting that they are starting to produce tangible results. During the January 2026 update of the World Economic Outlook, the Fund highlighted that Nigeria’s reforms are contributing to a brighter growth outlook for Sub-Saharan Africa. Economic growth in the region is now projected at 4.4% in 2025, a 0.2 percentage-point increase from previous forecasts, signalling a regional recovery supported by policy adjustments in key economies.
The IMF also revised growth projections for 2026 and 2027 upward to 4.6%, reflecting a cumulative 0.3 percentage-point increase compared to the October outlook. IMF Research Department Division Chief, Deniz Igan, attributed the improvements to favourable commodity prices, stronger macroeconomic conditions in major economies, and the early impacts of stabilisation policies in countries like Nigeria and Ethiopia.
According to the IMF, Nigeria’s gains are creating a more predictable economic environment. Coupled with structural reforms in South Africa and easing global financial conditions, these measures are reducing external borrowing costs and supporting sustainable growth. Igan emphasised that higher global commodity prices—especially for gold, copper, and coffee—are also boosting economic activity across the region.
Despite the positive momentum, the IMF warned that risks remain, particularly for low-income and fragile economies. Potential cuts to international development assistance or renewed global financial tightening could threaten progress. Globally, IMF Economic Counsellor Pierre-Olivier Gourinchas noted that world growth remains resilient at 3.3% and that inflation is expected to gradually ease from 4.1% in 2025 to 3.4% by 2027, though it will stay above central bank targets in many emerging economies.
The upward revision of Nigeria’s growth forecast, from 4.2% to 4.4% for 2026, underscores the IMF’s growing optimism about the country’s medium-term prospects. As fiscal coordination, macroeconomic stability, and reforms gain traction, Nigeria is emerging as a central driver of Sub-Saharan Africa’s economic recovery. This trend places the country within a broader narrative of regional resilience and recovery, offering hope for continued growth in the coming years.
source: nairametrics