The International Monetary Fund (IMF) has revised Nigeria’s economic growth projection downward to 3.0% for 2025, attributing the adjustment to declining global crude oil prices.
The updated forecast, contained in the IMF’s April 2025 World Economic Outlook report released during the Spring Meetings in Washington, reflects a 0.2 percentage point reduction from its previous 3.2% estimate.
The report highlighted broader challenges across sub-Saharan Africa, with regional growth expected to dip from 4.0% in 2024 to 3.8% this year before recovering to 4.2% in 2026. Nigeria’s 2026 projection was also trimmed by 0.3 percentage points due to the oil price slump.
Other African economies faced steeper cuts, with South Africa’s 2025 outlook reduced by 0.5 percentage points due to weak performance and policy uncertainties. South Sudan suffered the most dramatic revision – a 31.5 percentage point plunge – following delays in restoring oil production after pipeline damage.
The IMF’s downgrade underscores Nigeria’s continued vulnerability to commodity price fluctuations despite economic diversification efforts. The report comes as global financial leaders convene to address mounting economic challenges across developing nations.
