The International Monetary Fund (IMF), has predicted that Nigeria’s total investment will rise to 20 per cent of Gross Domestic Product (GDP) in 2026, its highest level since 2020, even as the country’s fiscal deficit is expected to widen, highlighting the contrasting outlook for investment activity and government finances.
According to the report, Nigeria’s total investment will increase from 17.76 per cent of GDP in 2025 to 19.97 per cent in 2026, before rising further to 20.19 per cent in 2027.
The projected recovery followed three consecutive years of declining investment, from 21.06 per cent of GDP in 2020 to 19.23 per cent in 2021, 18.10 per cent in 2022, 17.55 per cent in 2023 and 16.78 per cent in 2024.
However, the anticipated improvement comes alongside pressure on public finances, with the IMF projecting Nigeria’s fiscal deficit to widen from 1.76 per cent of GDP in 2025 to 3.30 per cent in 2026.
The primary balance, which excludes interest payments, is also expected to move from a surplus of 0.81 per cent of GDP to a deficit of 0.96 per cent over the same period.
