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According to the International Monetary Fund (IMF), Nigeria’s GDP is expected to reach $334 billion in 2026, overtaking Algeria as Africa’s third-largest economy.
Nigeria ranked fourth in Africa in 2025, behind South Africa, Egypt, and Algeria, with a GDP of roughly $285 billion at current prices, according to the fund’s World Economic Outlook (October 2025).
The IMF attributed Nigeria’s projected economic growth to higher oil production, improved foreign exchange (FX) liquidity, and the results of ongoing economic reforms, such as the elimination of fuel subsidies, liberalization of exchange rates, and fiscal adjustments, all of which are intended to support medium-term growth in spite of short-term inflationary pressures.
Nigeria’s GDP is expected to increase to over $334 billion this year, surpassing Algeria’s output of $284 billion.
According to IMF forecasts, there will be a change in the review year, and Nigeria’s economy is predicted to maintain its resilience and have a promising future.
With a projected GDP of $443 billion in 2026, South Africa is predicted to continue to be Africa’s largest economy, followed by Egypt at $399 billion.
South Africa’s economy remained the largest in Africa in 2025, with a GDP of $426 billion, followed by Egypt’s at $349 billion and Algeria’s at roughly $288 billion.
Currency devaluations, rebasing efforts, and more general macroeconomic issues impacting major African nations have caused fluctuations in Nigeria’s economic standing in recent years.
The country’s 2026 economic growth forecast was raised by the IMF earlier this year from an earlier estimate of 4.2% to 4.4%.
Additionally, the World Bank increased its growth forecast for Nigeria from 3.7% in mid-2025 to 4.4% in 2026.
In 2026, Nigeria is expected to contribute 1.5% of global real GDP growth, ranking sixth and among the top 10 countries worldwide, according to an IMF projection released last week.
Additionally, the progress put the nation ahead of a number of developed and growing economies, such as Saudi Arabia—1.7 percent, Vietnam—1.6 percent, Brazil—1.5 percent, and Germany—0.9 percent.
With 26.6 percent of the world’s growth, China is predicted to continue to lead the pack, followed by India 17.0 percent, the US 9.9 percent, Indonesia 3.8 percent, and Turkey 2.2 percent.
It is anticipated that China and India will account for 43.6% of the world economy’s growth this year.
As a result of the region’s sustained economic momentum, the IMF report also alluded to the Asia Pacific region’s supremacy, which was predicted to contribute close to 50% of world economic growth.
Elon Musk, the CEO of Tesla, responded to the IMF study by stating, “The balance of power is changing.”
Despite the present difficulties, estimates indicate that Nigeria’s real growth projection stays at about 3–4%.
The nation’s growth, fueled by consumption, facilitated the growth of trade, telecoms, energy, and services.
The ranking also demonstrated the county’s tremendous resilience in the face of persistent domestic and international economic issues, as well as its role as a major growth generator among rising economies.
The IMF report demonstrated how China and India were becoming the main engines of economic expansion worldwide.
Together, the Eurozone contributes 2% to world growth. While emerging markets are expected to grow by 4.2%, advanced economies as a whole are expected to grow by 1.8%.
