The International Monetary Fund (IMF) has omitted Nigeria from its list of Africa’s fastest-growing economies, naming Benin, Côte d’Ivoire, Ethiopia, Rwanda, and Uganda as global leaders driven by robust policy reforms, fiscal management, and investments in infrastructure and manufacturing. IMF African Department Director Abebe Selassie, speaking at the Sub-Saharan Africa Regional Economic Outlook launch on Thursday, projected the region’s growth to stabilize at 4.1% in 2025, with a slight increase in 2026.
Despite Nigeria’s growth forecast rising to 3.9% for 2025, buoyed by increased oil output and improved fiscal policies, Selassie noted it falls short of potential. He urged deeper structural reforms, better electricity supply, and non-oil revenue diversification. The IMF raised concerns about Nigeria’s reliance on domestic bank borrowing, which poses risks to financial stability, with half of public debt held by domestic institutions.
Selassie emphasized domestic revenue mobilization through tax system modernization and enhanced compliance, alongside debt management and transparency, to bolster resilience amid global challenges like declining oil prices and tightening financial markets.
The IMF commended Nigeria’s monetary tightening and exchange rate flexibility for easing inflation from 30% to 23% and improving FX reserves, but warned of persistent vulnerabilities and the need for sustained reforms to counter external shocks.
