IMF Lowers Nigeria's 2026 Growth Forecast to 4.1%

The International Monetary Fund (IMF) has downgraded Nigeria's growth forecast for 2026 to 4.1%, a reduction from the earlier estimate of 4.4% made in January 2026. This adjustment is attributed to economic disruptions caused by ongoing conflicts in the Middle East, which have impacted global energy markets.

The IMF's report, released on Tuesday as part of its April 2026 Global Financial Stability Report, indicates that while Nigeria's growth momentum is expected to sustain at 4.1% in 2026, the country faces headwinds from higher transportation costs and war-related energy price increases. The IMF's Chief Economist, Pierre-Olivier Gourincha, noted that the downgrade reflects broader pressures affecting energy-importing economies in Sub-Saharan Africa.

The report also highlights that inflation in the region is projected to rise, with median inflation expected to reach 5% in 2026 due to increased energy and fertilizer prices. The IMF emphasizes the need for coordinated efforts to address these challenges.