The International Monetary Fund (IMF) has upgraded its forecast for Nigeria’s economy, predicting it will grow faster than the United Kingdom, the United States, and several other advanced economies in 2025.
In its latest World Economic Outlook report released on Tuesday, the IMF increased Nigeria’s projected GDP growth rate from 3.0% to 3.4%.
This upward shift clearly signals stronger confidence in Nigeria’s economic trajectory.
Moreover, this 0.4 percentage point rise places Nigeria ahead of major global players.
The UK expects a growth rate of just 1.2%, while the US anticipates 1.9%, Canada 1.6%, and Germany a mere 0.1%.
Notably, this positive development follows a recent rebasing of Nigeria’s Gross Domestic Product by the National Bureau of Statistics (NBS). The NBS recalculated the GDP to N372.8 trillion ($243 billion) in 2024, up from N314.02 trillion in 2023.
This new estimate reflects increased measurement of informal sector activities, which significantly shape the country’s economic strength.
Consequently, the IMF now views Nigeria’s economy through a broader lens, accounting for sectors often overlooked in earlier estimates.
While Nigeria still ranks as Africa’s fourth-largest economy, trailing South Africa, Egypt, and Algeria, the new projection boosts its profile on the global stage.
In addition, the IMF adjusted growth projections for other countries. China’s expected growth rose from 4.0% to 4.8%, India’s from 6.2% to 6.4%, Brazil’s from 2.0% to 2.3%, and Mexico’s from -0.3% to 0.2%. Conversely, most advanced economies recorded minimal gains.
According to the IMF, factors such as improved financial conditions, a weaker U.S. dollar, lower-than-expected U.S. tariffs, and expansionary fiscal policies contributed to the global economic uplift.
Furthermore, the IMF now pegs global growth at 3.0% for 2025, slightly up from its earlier forecast of 2.8% this year.
Overall, Nigeria’s improving outlook reflects ongoing macroeconomic reforms, stronger investor sentiment, and a wider understanding of the economy’s real potential.
If Nigeria sustains these reforms and maintains policy momentum, it could emerge as one of Africa’s most resilient economies in the coming years.