By Jose Oby 
The International Monetary Fund (IMF) has revised its growth forecast for Nigeria’s economy, projecting a slower expansion rate of 3 percent in 2025. This marks a downgrade from the 3.2 percent estimate released in October 2024, according to the IMF’s latest World Economic Outlook (WEO) report, unveiled during the ongoing Spring Meetings in Washington, D.C.
Despite the downward revision, Nigeria’s economy is still expected to outperform South Africa’s, whose GDP is forecast to grow by just 1 percent in 2025 and 1.3 percent in 2026.
Meanwhile, oil prices — a major source of revenue for Nigeria — fell to $59 per barrel on April 9, the lowest level since February 2021 and significantly below the country’s budget benchmark of over $70 per barrel.
Commenting on the situation at a press conference in Washington, Pierre-Olivier Gourinchas, the IMF’s Chief Economist and Director of Research, attributed the slump in oil prices largely to weakening global demand.
“It’s the slowdown in global economic activity that is driving the drop in prices,” he said.