The International Monetary Fund (IMF) has lowered Nigeria’s economic growth forecasts for 2025 and 2026. This change came with the release of the April 2025 World Economic Outlook during the IMF/World Bank Spring Meetings in Washington, D.C.
Revised Growth Projections
The IMF reduced Nigeria’s growth forecast to 3.0% for 2025 and 2.7% for 2026, down from the 3.2% and 3.0% predicted in January 2025.
Global Uncertainties and Weak Oil Prices
The IMF linked the lower projections to global uncertainties and weaker oil prices. The report also raised the global recession risk to 40%, up from 25% in October 2024.
External and Domestic Challenges
The IMF pointed to several challenges impacting Nigeria:
- Ongoing trade tensions among major economies
- Lower demand from advanced economies
- A significant drop in crude oil prices
Warning on Macroeconomic Stability
The IMF cautioned that Nigeria’s ability to maintain macroeconomic stability could be at risk without strong policy responses. Emerging markets like Nigeria face more vulnerability due to their integration into global supply chains.
Policy Recommendations for Nigeria
IMF officials urge Nigeria to implement reforms and adopt proactive strategies to counter economic challenges. Key measures include strengthening fiscal policies, diversifying revenue sources, and enhancing trade resilience.
