The International Monetary Fund (IMF) has projected that Nigeria’s economy will grow by 4.4% in 2026, signaling a recovery trajectory despite persistent challenges. However, the global financial institution cautioned that inflationary pressures remain a significant risk to the country’s economic stability.

Economic Growth on the Upswing
According to the IMF’s latest report, the projected growth is underpinned by improvements in the oil sector, government reforms, and rising domestic consumption. The fund highlighted that targeted fiscal policies and investment in infrastructure are expected to sustain this momentum.

Inflation: A Lingering Threat

Despite the positive growth forecast, the IMF warned that high inflation could undermine purchasing power and slow down recovery. Factors contributing to inflation include food price volatility, currency fluctuations, and global commodity market shifts.

Policy Recommendations

The IMF urged the Nigerian government to:

• Maintain fiscal discipline to avoid macroeconomic imbalances.

• Strengthen monetary policies to curb inflation.

• Invest in critical sectors such as agriculture and manufacturing to drive inclusive growth.

Looking Ahead

While the growth projection is encouraging, experts say that sustained policy implementation and private sector participation will be crucial to ensuring that the benefits of economic growth reach ordinary Nigerians.