The International Monetary Fund (IMF), on Monday, raised Nigeria’s economic growth forecast for 2026 to 4.4 per cent, up from the 4.2 per cent it announced for the country in October.

The Fund, which announced the upgrade in its January 2026 update of the World Economic Outlook (WEO), titled “Global Economy: Steady amid Divergent Forces,” also raised Nigeria’s economic growth forecast for 2027 to 4.1 per cent from the 4 per cent it forecast in October.

It stated that Nigeria’s improved outlook reflects a broader improvement across sub-Saharan Africa, where growth is also “expected to accelerate in sub-Saharan Africa, from 4.4 per cent in 2025 to 4.6 per cent in 2026 and 2027, supported by macroeconomic stabilisation and reform efforts in key economies.”

The IMF, in the report, forecast ​global GDP growth at 3.3 per cent in 2026, up 0.2 percentage points from its last estimate in October.

That’s even with 3.3 per cent growth in 2025, which will also beat the October ‌estimate by 0.1 percentage point, the Fund said, adding that it projects 2027 growth at 3.2 per cent, unchanged from the previous forecast.

The ‌IMF said that globally, inflation was forecast to continue to decline, from 4.1percent in 2025 to 3.8percent in 2026 and 3.4percent in 2027.

Analysts note that the IMF’s upgrade of its 2026 and 2027 growth forecasts for Nigeria reflects the optimism that the Bretton Woods institutions (the World Bank and the IMF) are showing in their economic projections about Nigeria’s medium-term prospects.

The World Bank, in its latest Global Economic Prospects report, released last Tuesday, raised Nigeria’s economic growth forecast for 2026 to 4.4 per cent, from the 3.7 per cent projection it had announced for the country in June 2025.

In its report, the World Bank said: “Growth in Nigeria is forecast to strengthen to 4.4 per cent in both 2026 and 2027—the fastest pace in over a decade.

This further firming of growth is anticipated to be underpinned by a continued expansion in services and a rebound in agricultural output, with a modest acceleration in the non-oil industry.

“Economic reforms, including in the tax system, along with continued prudent monetary policy, are expected to continue supporting activity.

They are also expected to improve investor sentiment and reduce inflation further. Higher oil output is expected to offset lower international oil prices this year, helping to boost fiscal revenues and strengthen the external balance.”