The International Monetary Fund (IMF) has raised its growth projections for Nigeria’s economy in its July 2025 World Economic Outlook report. Nigeria’s economic growth is now expected to reach 3.4% in 2025, up from the 3.0% forecast made in April 2025. For 2026, growth is projected at 3.2%, an increase from 2.7%.
Globally, the IMF also revised upward its forecast for world economic growth to 3.0% in 2025 and 3.1% in 2026. The Sub-Saharan Africa region is expected to grow by 4.0% in 2025 and 4.3% in 2026, up from earlier projections.
Despite these positive revisions, the IMF stresses the urgent need for structural and institutional reforms in Sub-Saharan Africa to address economic challenges. Key priorities include:
- Enhancing regional trade integration
- Increasing investment in transport infrastructure
- Reforming state-owned enterprises, particularly in the energy and transportation sectors
IMF experts also emphasize the importance of equitable fiscal reforms to raise revenue without exacerbating inequality or social unrest. Recommended measures include:
- Removing poorly targeted tax exemptions
- Relying more on progressive income taxes
- Building public trust through transparent governance and stakeholder engagement
The IMF warns that many countries face high public debt and deficits, which limit fiscal space and make them vulnerable to shifts in global financial conditions. Protecting central bank independence remains critical to sustaining price stability and investor confidence.
