The International Monetary Fund (IMF) has revised Nigeria’s 2024 growth projection to 2.9%, down from 3.3%, citing ongoing macroeconomic challenges such as recent flooding and oil production disruptions. The revision was part of the IMF’s latest World Economic Outlook (WEO) report.
The IMF expects global economic growth in 2025 to hold steady at 3.2%, although this is a slight decline from its July 2024 projection. For Nigeria, the IMF raised its 2025 growth forecast to 3.2%, a 0.2% increase from its previous estimate.
Inflation remains a significant concern, with the IMF projecting Nigeria’s inflation rate to reach 25% in 2025, eventually dropping to 14% by 2029. Despite these challenges, Nigeria’s economy grew by 2.98% in the first quarter and 3.19% in the second quarter of 2024, reflecting resilience in the face of rising inflation and currency depreciation.
The IMF attributed its downward revision to disruptions in agriculture caused by severe flooding and ongoing issues in oil production. Jean-Marc Natal, division chief at the IMF’s Research Department, noted that while inflation has stabilized in some countries, many in the region, including Nigeria, are still grappling with high inflation and growth challenges.
In a related development, Finance Minister Wale Edun, speaking at the IMF/World Bank Annual Meeting, called for increased concessional funding for developing nations to help address cost-of-living crises and spur economic growth.
