The International Monetary Fund (IMF) has upgraded Nigeria’s economic growth outlook, projecting a 3.9 percent expansion in 2025 and 4.2 percent in 2026.

The revised forecast was announced on Tuesday during the launch of the World Economic Outlook (WEO) 2025 at the ongoing World Bank and IMF Annual Meetings in Washington, D.C.

In its July 2025 update, the IMF had estimated Nigeria’s growth at 3.4 percent. The new figures represent a 0.5 percentage point increase, reflecting growing confidence in the country’s reform-driven economic recovery.

Also, the Fund projected that the Nigerian economy would grow by 4.2 percent in 2026, an improvement from the 3.2 percent it predicted in July.

The IMF attributed Nigeria’s upgraded growth forecast to a combination of supportive domestic factors, including increased oil production, rising investor confidence, and a more favorable fiscal stance projected for 2026.

“Whereas growth in Nigeria is revised upward on account of supportive domestic factors, including higher oil production, improved investor confidence, a supportive fiscal stance in 2026, and given its limited exposure to higher US tariffs, many other economies see significant downward revisions because of the changing international trade and official aid landscape,” the Fund stated.

The IMF added that sustained implementation of structural reforms and continued macroeconomic stability will be critical to maintaining the country’s positive growth trajectory through 2026.