IMF Raises Nigeria's Growth Forecast to 4.2% Amid Hardship

The International Monetary Fund (IMF) has raised Nigeria's economic growth forecast for 2026 to 4.2%, with a projection of 4.3% for 2027. These projections were presented in the IMF's 2026 World Economic Outlook, titled “Resilience Under Strain, Urgent Choices,” by IMF Director of Research Silvana Tenreyro in Bangkok, Thailand.

The 2026 forecast is an upward revision of 0.1 percentage point. The IMF recognized that Nigerians are suffering from rising food and energy costs and called for immediate relief.

It attributed Nigeria's growth outlook to improved macroeconomic stability and favorable terms of trade but warned that higher prices for essential goods could worsen poverty and food insecurity. The IMF's recommendations included temporary, targeted cash transfers to assist Nigeria's most vulnerable households, ensuring fiscal sustainability through better government spending and stronger revenue collection.

This comes amid pressure from opposition presidential aspirants Atiku Abubakar and Peter Obi for the Tinubu administration to restore petrol subsidies to alleviate hardship.