IMF Lowers Nigeria's 2026 Growth Forecast to 4.1%

The International Monetary Fund (IMF) has cut Nigeria's economic growth forecast for 2026 to 4.1%, down from an earlier estimate of 4.4%, marking a reduction of 0.3 percentage points. This adjustment was disclosed during a media briefing for the launch of the April 2026 Global Financial Stability Report.

Deniz Igan, Deputy Chief of the Macro-Financial Division at the IMF's Research Department, explained that the downgrade is attributed to increasing costs and pressures on the economy, particularly due to the ongoing war affecting non-oil commodity markets and worsening conditions for oil-importing countries. The IMF noted a decline in foreign aid and bilateral support, which is expected to persist.

Nigeria's inflation rate stood at approximately 15.06% year-on-year as of February 2026, with the benchmark interest rate remaining elevated at 26.50%. The IMF's projections indicate a broader slowdown in global growth, with world output expected to decline to 3.1% in 2026.