IMF: Nigeria’s Economy to Grow by Just 3% in 2025

Nigeria’s economic growth is expected to slow to just 3.0% in 2025, according to the latest forecast by the International Monetary Fund (IMF).

The revised projection was revealed on Tuesday in Washington, D.C., during the release of the IMF’s April World Economic Outlook (WEO) report at the ongoing Spring Meetings of the IMF and World Bank.

The new figures mark a downward adjustment from the 3.2% growth earlier predicted in January. The outlook for 2026 has also been revised, with growth now expected at 2.7%, compared to the previous forecast of 3.0%.

The IMF blamed the slower growth forecast on both global and domestic challenges. These include persistent oil price volatility, rising global economic uncertainty, and reduced demand from advanced economies.

The report warns that the risk of a global recession is now 40%, up from 25% in October 2024—a concerning shift that could hit developing countries like Nigeria the hardest.

Pierre-Olivier Gourinchas, the IMF’s Chief Economist, noted that countries with deep links to global trade networks, such as Nigeria, are particularly exposed.

“Uncertainty is discouraging investment and economic activity,” he said. “Emerging economies are being squeezed by weakening demand for their exports and continued financial volatility.”

IMF urged Nigerian policymakers to implement strong and coordinated responses to shield the economy from further shocks and ensure macroeconomic stability in the months ahead.

— NAN

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