IMF Updates Nigeria Growth Forecast Amid Economic Pressures

The International Monetary Fund revised Nigeria’s 2026 economic growth projection to 4.2%, noting enhanced macroeconomic stability and positive terms of trade. This adjustment reflects a 0.1 percentage point increase from the prior estimate. The Fund cautioned that rising food and energy costs could intensify poverty and food insecurity despite the economy’s expansion.

The IMF maintained its 2027 growth forecast at 4.3%, indicating continued economic recovery but warning that household welfare improvements may remain limited. The report, titled Resilience Under Strain, Urgent Choices , emphasized the conflict between improving economic conditions and escalating living costs for households.

The Fund stressed that stronger headline growth alone cannot alleviate hardship from Nigeria’s economic adjustment, as higher prices for essentials persist. This assessment underscores the challenge of translating economic progress into tangible benefits for many Nigerians.