The International Monetary Fund (IMF) has downgraded Nigeria’s 2025 economic growth projection to 3.0%, citing the impact of falling global oil prices.
This marks a 0.2 percentage point drop from its previous forecast of 3.2%, as revealed in the IMF’s April 2025 World Economic Outlook report, unveiled during the ongoing Spring Meetings of the IMF and World Bank in Washington.
According to the report, economic momentum across sub-Saharan Africa is also expected to soften, with regional growth projected to dip from 4.0% in 2024 to 3.8% in 2025, before climbing modestly to 4.2% in 2026. Nigeria, a major oil-dependent economy, is particularly vulnerable to global crude price shocks, which remain a key factor in its fiscal health and foreign reserves.
In addition to Nigeria, the IMF also revised South Africa’s 2025 growth forecast downward by 0.5 percentage points due to persistent economic headwinds, sluggish 2024 performance, and global protectionist trends.