IMF downgrades Nigeria’s economic growth projections amid Global uncertainties

Washington D.C., April 23, 2025 — The International Monetary Fund (IMF) has sharply lowered Nigeria’s economic growth forecasts, predicting a decline to 3.0% in 2025 and 2.7% in 2026.

Consequently, this revision reflects Nigeria’s struggles with low oil prices and rising global instability.

Moreover, the risk of a recession has surged to 40%, a stark increase from zero percent in October.

The World Economic Outlook (WEO), released Tuesday during the IMF/World Bank Spring Meetings, shows a drop from January’s projections of 3.2% for 2025 and 3.0% for 2026.

Specifically, the IMF cites domestic issues and worsening global conditions, including trade conflicts and reduced demand from developed nations.

Additionally, emerging economies like Nigeria face heightened exposure to supply chain disruptions.

Pierre-Olivier Gourinchas, IMF Economic Counsellor, stressed that global uncertainty harms investment activity.

He warned, “Emerging markets will suffer from declining demand due to tariffs.”

Furthermore, Nigeria’s economic stability is at risk without strong policy interventions.

Jason Wu, IMF’s assistant director, noted that while reforms have improved Nigeria’s credit rating, volatile financial markets may widen sovereign spreads.

Since oil prices heavily influence Nigeria’s economy, the IMF’s warnings highlight the nation’s vulnerability.

Therefore, policymakers must adopt effective strategies to counter these threats. Proactive measures are essential to ensure resilience against ongoing global and domestic pressures.

In summary, the IMF’s report underscores the urgent need for Nigeria to strengthen its economic defenses.

Without decisive action, the country may face prolonged instability in an increasingly uncertain world.

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