IMF Raises Forecast On Nigeria’s GDP In 2024 To 3.3% Amid Improved Economic Outlook

The International Monetary Fund (IMF) announced a positive adjustment of its forecast for Nigeria’s Gross Domestic Product (GDP).

The country’s GDP is now expected to grow from 2.9 per cent in 2023 to 3.3 per cent in 2024, signaling an improved economic trajectory.

In a press conference held at the ongoing spring meetings in Washington D.C., the IMF attributed this upward revision to several factors, including the recovery of Nigeria’s oil sector, enhanced security conditions, and advancements in agriculture.

Addressing questions, Daniel Leigh, IMF’s division chief of the research department, highlighted the drivers behind this growth projection. He noted, “Growth in Nigeria is steady but rising this year from 2.9 percent last year to 3.3 percent. We have seen an expansion from the recovering oil sector with a better security situation and also improved agriculture benefiting from better weather conditions and the introduction of dry season farming.”

Leigh further elaborated on the broader economic landscape, stating, “There is a broad-based increase also in the financial sector and the IT sector. Inflation has increased, partly reflecting reforms, the exchange rate, and a shift from imports to other goods. This explains also why we revised our inflation projection for this year to 26 percent.”

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However, despite the current inflationary pressures, the IMF remains optimistic about Nigeria’s economic outlook. Leigh emphasized the effectiveness of recent monetary policies in curbing inflation, stating, “With the tight monetary policies and the interest rate policy increase and significant interest rate in February and March, we see inflation declining to 23 percent next year and then 18 percent in 2026. So, it is moving in the right direction.”

The IMF’s revised forecasts indicate a positive momentum for Nigeria’s economy, fueled by improvements across key sectors. The emphasis on diversified growth, coupled with effective policy measures to address inflationary concerns, underscores a promising outlook for the country’s economic future.