The International Monetary Fund (IMF) has lowered its economic growth projection for Nigeria in 2025, revising the expected expansion rate from 3.2% to 3.0%. This adjustment reflects ongoing concerns about both global and domestic economic pressures.
The IMF’s downgrade comes amid a backdrop of falling global crude oil prices—an especially critical issue for Nigeria, whose economy remains heavily reliant on oil exports. Although Nigeria recorded modest growth of 3.3% in 2024, sustaining that momentum appears uncertain due to weakening external demand and internal structural weaknesses.
Key domestic challenges, such as high inflation, currency volatility, and underinvestment in critical infrastructure, continue to hinder economic stability. The IMF also noted that Nigeria’s efforts at economic diversification have yet to yield significant results, making the country vulnerable to shifts in the global energy market.Inflation, while expected to ease slightly in 2025, remains a major concern for consumers and policymakers alike. The forecast assumes continued efforts to tighten monetary policy and control public spending. Still, without bold and sustained reforms, the Fund warned that Nigeria’s growth could stagnate or even decline further in the coming years.
The IMF called on Nigerian authorities to intensify efforts to boost productivity in non-oil sectors, particularly agriculture, manufacturing, and technology. These sectors, according to the Fund, hold the key to long-term resilience and inclusive growth.
