The International Monetary Fund (IMF) has reduced Nigeria’s economic growth forecast for 2026 by 0.3 percentage points, cutting it from 4.4% to 4.1%, The IMF disclosed this during a media briefing for the launch of its April 2026 Global Financial Stability Report, citing mounting global and domestic pressures.
Giving rationale behind the downgrade, Deniz Igan, Deputy Chief of the Macro-Financial Division in the IMF’s Research Department, said the relatively strong economic performance seen in Sub-Saharan Africa in 2025 has weakened amid fresh global shocks, particularly the ongoing US-Israel war in Iran, which has disrupted non-oil commodity markets and worsened conditions for oil-importing countries.
“With the war, however, global growth has weakened, non-oil commodity prices have softened, and terms of trade have worsened for oil importers—an important source of variation across the region,” she said.
She further noted that declining foreign aid is adding pressure across the region, with bilateral support dropping by as much as 16% to 28% in 2025, a trend expected to persist.
