Nigeria’s Economic Growth to Reach 3.3%- IMF

The International Monetary Fund (IMF) has projected that Nigeria’s economic growth is set to rebound, reaching a promising 3.3% for the year. This positive outlook was shared during the IMF’s latest review of Nigeria’s economic performance and future prospects.

The IMF’s new forecast represents a notable improvement from Nigeria’s recent economic challenges, particularly during the global economic slowdown. This growth estimate signifies a significant rebound, offering hope for economic recovery and stability within the nation.

“This positive outlook is attributed to the diminishing impact of previous weather shocks and gradual improvements in supply issues. The forecast for 2024 remains consistent with the January 2024 WEO Update, as negative adjustments for Angola due to a contraction in the oil sector are largely balanced by positive revisions for Nigeria,” the report said.

However, the IMF also noted several important considerations. The report highlighted the need for continued efforts to diversify Nigeria’s economy beyond oil, as reliance on this sector has historically made the nation vulnerable to global oil price fluctuations. Diversification efforts would entail strengthening other sectors such as agriculture, manufacturing, and services, which would contribute to sustained and inclusive economic growth.

The IMF stated, “Global growth, estimated at 3.2 per cent in 2023, is projected to continue at the same pace in 2024 and 2025. The projection for 2024 is revised up by 0.1 percentage point from the January 2024 WEO Update and by 0.3 percentage point to the October 2023 WEO forecast. Nevertheless, the projection for global growth in 2024 and 2025 is below the historical (2000–19) annual average of 3.8 per cent, reflecting restrictive monetary policies and withdrawal of fiscal support, as well as low underlying productivity growth.”

In response to the IMF’s forecast, Nigerian policymakers have reaffirmed their commitment to implementing necessary reforms and policies to support economic recovery and diversification. These efforts align with broader national strategies aimed at fostering economic stability and prosperity for all Nigerians.