The International Monetary Fund (IMF) has revised Nigeria’s 2026 economic growth forecast downward to 4.1 percent, citing the ongoing Middle East conflict and its ripple effects on global energy and supply chains.
The announcement was made during the IMF and World Bank Spring Meetings in Washington, D.C., where officials warned that rising fuel, shipping, and fertilizer costs are weighing heavily on energy-importing economies.
IMF Chief Economist Pierre-Olivier Gourinchas said the downgrade reflects broader global pressures, particularly for developing countries reliant on imported energy.
The Fund noted that while higher oil prices may provide some offset for oil-producing nations, Nigeria is still expected to face weaker overall growth due to inflationary pressures and increased production costs.
Despite the downgrade, the IMF projects a gradual recovery in 2027, though it warns that tighter monetary policy will be essential to stabilise inflation in Nigeria.
