The International Monetary Fund (IMF) has revised Nigeria’s economic growth outlook upward, projecting a 3.9% expansion in 2025 and 4.2% in 2026, citing improved investor confidence and a more supportive fiscal environment.

The latest forecast, released on Tuesday during the World Economic Outlook (WEO) 2025 presentation at the World Bank and IMF Annual Meetings in Washington, D.C., represents a significant improvement from the 3.4% projection issued in July 2025.

According to the IMF, Nigeria’s growth upgrade is driven by higher oil production, improved fiscal management, and renewed investor confidence stemming from ongoing reforms under President Bola Tinubu’s administration.

“Whereas growth in Nigeria is revised upward on account of supportive domestic factors, including higher oil production, improved investor confidence, and a supportive fiscal stance in 2026… many other economies see significant downward revisions due to global trade uncertainty,” the IMF stated.

The Fund’s new projection places Nigeria ahead of South Africa in growth expectations but slightly below the Sub-Saharan Africa regional average.

While acknowledging lingering challenges from global uncertainty and trade protectionism, the IMF said Nigeria’s limited exposure to rising U.S. tariffs and its internal reforms position it for moderate yet resilient growth.

The report comes as Central Bank Governor Olayemi Cardoso leads Nigeria’s delegation to the IMF-World Bank meetings, with Finance Minister Wale Edun reportedly absent due to illness.

The revised forecast is seen as a vote of confidence in the country’s macroeconomic direction, following several bold policy shifts aimed at stabilising the naira, improving fiscal discipline, and attracting foreign investment.