(DDM) – Nigeria, Africa’s largest economy and most populous nation, has been excluded from the International Monetary Fund’s (IMF) latest ranking of Africa’s fastest-growing economies, raising new concerns over the country’s economic stagnation under President Bola Tinubu’s administration.
Diaspora Digital Media (DDM) reports that the IMF’s Regional Economic Outlook released this week listed Benin Republic, Côte d’Ivoire, Ethiopia, Rwanda, and Uganda as Africa’s five fastest-expanding economies for 2025.
The Fund attributed their success to policy consistency, fiscal discipline, and targeted investments in key productive sectors such as agriculture, manufacturing, and infrastructure — areas where Nigeria continues to struggle.
IMF’s Africa Department Director, Abebe Aemro Selassie, stated that the listed countries have sustained robust GDP expansion through reforms and strategic governance.
He said, “Several countries in the region, Benin, Côte d’Ivoire, Ethiopia, Rwanda, and Uganda, are among the fastest-growing economies in the world. This reflects the impact of macroeconomic stabilization and reform efforts across major economies in Sub-Saharan Africa.”
Despite Nigeria’s exclusion, the IMF marginally improved its 2025 growth projection for the country to 3.9 percent, a 0.5 percentage point increase from its previous forecast, citing higher oil output, improved investor sentiment, and a more supportive fiscal environment.
Data from the National Bureau of Statistics (NBS) showed that Nigeria’s economy expanded by 4.23 percent in Q2 2025, compared to 3.48 percent in the same quarter of 2024, driven largely by crude oil gains and non-oil sector recovery.
However, the IMF warned that Nigeria’s economic growth remains “below potential,” emphasizing the urgent need for structural reforms.
It advised Nigeria to strengthen its power sector, reduce inflation, and diversify its revenue base to achieve sustainable long-term growth.
The Fund also expressed concern over rising financial vulnerabilities in Africa, particularly the region’s growing dependence on domestic bank borrowing to finance government expenditure.
“About half of public debt in Sub-Saharan Africa is now held by domestic financial institutions,” Selassie cautioned, adding that this trend exposes both banks and governments to higher systemic risks.
He urged African leaders to strengthen financial regulation, improve capital buffers, and ensure fiscal transparency to prevent economic instability.
According to the IMF, African nations must prioritize domestic revenue mobilization and debt management transparency by modernizing tax systems, reducing waivers, and publishing comprehensive debt data.
“These reforms must build public trust, enhance institutional capacity, and ensure fairness through careful impact assessments,” the IMF stated.
At the IMF/World Bank Annual Meetings, key IMF officials described Nigeria’s policy direction as “broadly positive,” acknowledging fiscal consolidation, tax streamlining, and monetary tightening as encouraging steps.
Davide Furceri, Division Chief at the IMF’s Fiscal Affairs Department, said Nigeria’s fiscal stance remains neutral — balancing spending and taxation to stabilize inflation.
Similarly, Tobias Adrian, Director of the Monetary and Capital Markets Department, praised Nigeria’s flexible exchange rate policy and tighter monetary control for restoring investor confidence.
He remarked, “A depreciating exchange rate isn’t necessarily bad. It can help restore equilibrium. Nigeria’s policy calibration has been encouraging.”
Jason Wu, IMF Assistant Director, also noted improvements in revenue collection and foreign exchange transparency, adding that inflation has fallen from over 30 percent in 2024 to about 23 percent in 2025.
Nonetheless, Wu cautioned that Sub-Saharan Africa remains vulnerable to external shocks, stressing that only stronger fiscal discipline and debt management can protect regional economies from renewed volatility.
Economists say Nigeria’s absence from the IMF’s growth list is symbolic of a deeper problem one rooted in inconsistent policy execution and the high cost of doing business.
Analysts warnreforms that unless Nigeria accelerates , diversifies its economy beyond oil, and tackles structural inefficiencies, it risks being left behind by smaller African nations now attracting global investments.
