IMF Upgrades Nigeria’s 2026 Growth Outlook to 4.4% but Warns on Inflation

The International Monetary Fund (IMF) has revised its economic forecast for Nigeria, projecting that the country’s economy will expand by 4.4 percent in 2026, reflecting growing confidence in ongoing reforms and improving macroeconomic conditions.

The updated outlook comes as part of the IMF’s January 2026 World Economic Outlook, which also indicates strengthening growth across sub‑Saharan Africa in the coming years.

Despite the improved growth forecast, IMF representatives cautioned that inflation remains a major challenge, with persistent double-digit rates putting pressure on the cost of living and limiting policy flexibility. They emphasized that sustaining structural reforms will be crucial to consolidating economic gains and keeping inflation under control.

The IMF also highlighted broader regional trends, noting that stabilisation efforts and reform measures in other African economies are contributing to a cautiously optimistic outlook for the continent’s growth.